Story perspectives

RBA Expected to Lift Cash Rate to 4.6%

By Drooid · Oct 2, 2026, 6:04 AM UTC · How we work

Summary

Story summary

Treasurer Jim Chalmers prepared for a fourth interest-rate rise as inflation persisted.
The Reserve Bank is expected to lift the cash rate 25 bps to 4.60 %.
Headline inflation stands at 3.5 % y/y and trimmed-mean inflation at 3.6 %.
Housing costs rose 5 % annually while food and non-alcoholic drinks increased 3.2 %.
Opposition leaders Pauline Hanson and Tim Wilson accused Chalmers of gaslighting and a spending addiction.

History

Historical Context

After the 1983 float of the Australian dollar and sweeping financial deregulation under Prime Minister Bob Hawke, the Reserve Bank of Australia gained full central-bank powers following the 1959 Act that took effect on 14 January 1960. The bank’s 1993 inflation-target range of 2–3 % now frames today’s rate rise, echoing the high-inflation battle of the early 1980s.

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Story summary

Treasurer Jim Chalmers prepared for a fourth interest-rate rise as inflation persisted.
The Reserve Bank is expected to lift the cash rate 25 bps to 4.60 %.
Headline inflation stands at 3.5 % y/y and trimmed-mean inflation at 3.6 %.
Housing costs rose 5 % annually while food and non-alcoholic drinks increased 3.2 %.
Opposition leaders Pauline Hanson and Tim Wilson accused Chalmers of gaslighting and a spending addiction.

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