The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.60% at its September meeting. Read the full statement here.

Underlying inflation remains persistently above target. Annual trimmed mean inflation which is the RBA’s preferred measure held at 3.6% in the 12 months to July 2026, unchanged from June and still well above the RBA’s 2-3% target band, according to the Australian Bureau of Statistics.

RBA Deputy Governor Andrew Hauser was candid about the central bank’s concern, pointing to three key risks pushing inflation higher: the ongoing Middle East conflict, the global AI boom driving up prices and the weaker-than-expected supply capacity of the Australian economy. Governor Michele Bullock reinforced the message in an address to parliament, saying “inflation is too high” and that the Board is focused on “making sure that it does not become embedded into price and wage-setting decisions”, a risk that becomes harder to manage the longer inflation stays above target.

Four cash rate rises in a single year is significant. If you’d like to understand what this means for your repayments or explore your options, We're here to help.

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