Australia Raises Cash Rate to 4.6% Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.6% on September 29, 2026, in response to inflationary pressures exacerbated by the Middle East conflict.

This move aligns with economists' expectations and reflects ongoing concerns about inflation, which is projected to remain above the target range of 2%-3% through 2026.

Inflation in Australia has risen to 3.5%, exceeding market expectations, with rising costs associated with inflation and energy prices posing challenges to companies operating in sectors sensitive to interest rates, such as technology.