RBA Hikes Cash Rate Again Amid Persistent Inflation

The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.60 per cent, bringing the total tightening in 2026 to 100 basis points.

This increase was anticipated by markets and follows three hikes earlier this year.

Economists had initially expected a pause due to August's mixed labour force report, but underlying inflation of 3.6 per cent and stronger-than-expected economic growth kept the case for further tightening intact.

RBA board members stated that some upside risks to inflation are materialising, including disruptions to global oil supply and higher fuel prices being passed through to other goods and services.