Reserve Bank of Australia raises its cash rate target to 4.60 per cent
29 September 2026
The Reserve Bank of Australia's Monetary Policy Board raised the cash rate target by 25 basis points to 4.60 per cent on 29 September 2026.
Its statement says inflation remains elevated and some of the upside risks flagged in August are materialising.
The Board pointed to a Middle East conflict pushing global energy prices higher and AI-related demand lifting technology goods prices.
ABC News reports it is the fourth rate rise of 2026 and the highest cash rate since November 2011.
The Board said it remains attentive to the data.
New cash rate target:
4.60 per cent
Increase:
25 basis points
Decision body:
Monetary Policy Board
Why it matters for exams: Central bank rate decisions and the inflation drivers behind them are staple questions in economy and current-affairs papers.
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