RBA Boosts Cash Rate to 15-Year High Amid Elevated Inflation

The Reserve Bank of Australia (RBA) has increased its cash rate target by a quarter percentage point, moving it to 4.6 percent from 4.35 percent.

This marks the fourth increase by the RBA this year and lifts the cumulative rise in borrowing costs during 2026 to one full percentage point.

The decision is aimed at curbing stubborn inflation, which continues to run at 3.6 percent, above the central bank's target band of 2 to 3 percent.

The move will place additional strain on mortgage holders, especially those with sizable home loans, as costlier borrowing adds further pressure to household budgets.