Story perspectives

Reserve Bank Lifts Cash Rate to 4.6%

By Drooid · Oct 3, 2026, 12:04 AM UTC · How we work

Summary

Story summary

Angus Taylor criticized Labor's spending after the Reserve Bank raised the cash rate to 4.6%.
The Reserve Bank increased the cash rate by 25 basis points to 4.6%, a 15-year high.
Government spending reached 26.9% of GDP last financial year, the highest in four decades aside from the pandemic.
Treasury projects interest payments will exceed Medicare spending by 2028-2029 as federal debt approaches $1.2 trillion.

History

Historical Context

In August 1990 the Reserve Bank of Australia lifted the cash rate to a record 17%, sending the economy into its deepest recession since the Great Depression. The shock spurred inflation targeting, deregulation and the Howard-Era reforms that drove two decades of growth. Today, Liberal MP Angus Taylor warns that the RBA’s 4.6% rate could again strain fiscal balances.

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Story summary

Angus Taylor criticized Labor's spending after the Reserve Bank raised the cash rate to 4.6%.
The Reserve Bank increased the cash rate by 25 basis points to 4.6%, a 15-year high.
Government spending reached 26.9% of GDP last financial year, the highest in four decades aside from the pandemic.
Treasury projects interest payments will exceed Medicare spending by 2028-2029 as federal debt approaches $1.2 trillion.

1 / 2