RBA Rates Announcement Sep 2026

Amid continuing inflation pressures, the RBA lifted its official cash rate to 4.60% today – its highest level since 2011.

The RBA said today’s 0.25% increase to its official rate was a necessary step because inflation, for various reasons, remains elevated.

‘Since the previous meeting, some of the upside risks to inflation are materialising,’ said the Central Bank today.

‘There have been further disruptions to global oil supply and recent data suggest that growth and inflation in Australia have been higher than expected.’

The nine-person RBA board (who unanimously voted for the hike) clearly felt pulling the trigger on a fourth rate hike of the year today was needed.

And there may be a fifth increase still to come this year.

’The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed,’ added the Central Bank.

Recent inflation data underscores the challenge.

The trimmed mean, which is keenly watched by the RBA, remains at 3.60% while headline inflation sits at 3.50% – both well above the 2–3% target range set by the Central Bank.

No wonder the RBA’s deputy governor Andrew Hauser told ABC TV earlier this month, “We have one big problem, and that’s inflation”.

Household spending rose 1.1% in July, well above the 0.3% forecast. At the same time, the situation in the Middle East has flared again, sending the global oil benchmark up in price once more.

And according to some industry experts, the official rate should be lifted another two or three times.

“To put a nail in the coffin of inflation, unequivocally, you need to get the cash rate to 5 per cent and above,” Christian Baylis, the co-founder of Fortlake Asset Management, said in the AFR.

Commercial lenders are responding. Comm Bank lifted its two-year fixed home loan rate to 6.82%, and other fixed rates by between 0.15–0.3 of a percentage point, which mirrors similar moves by three other major banks in September.

And ING announced this month that it would increase its fixed interest rates for owner-occupier and investor home loans by 0.2%.

“Inflation is still too high and the Board judged that, in light of recent developments, a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period,” concluded the Central Bank.

However, should we see a drop in the official cash rate from the RBA, you can find out more in our article on preparing for a rate cut.

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