RBA Hikes Cash Rate to 4.60% Amid Persistent Inflationary Pressures

The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.60 per cent, ending a pause that lasted since May.

This increase on September 29 takes the cumulative tightening delivered in 2026 to 100 basis points, following three hikes during the first five months of the year.

The RBA's monetary policy board stated that some upside risks to inflation have materialized. Global oil supply disruptions and higher fuel prices have contributed to higher inflation, which has partially been passed through to other goods and services.

Katherine Palmer, head of fixed income strategy at BlackRock Australia, noted the timing of the decision is notable, as updated inflation data will be released tomorrow.