RBA Hikes Cash Rate to 4.60% Amid Rising Inflation Pressures

The Reserve Bank of Australia (RBA) made its fourth interest rate hike this year, increasing the cash rate target to 4.60% in September 2026. This move matches market expectations and marks the highest level since 2011.

The decision was driven by rising inflation both locally and globally, with key catalysts including global energy price hikes due to Middle East supply disruptions and stronger-than-expected recent inflation.

The RBA Board also highlighted that surge demand for artificial intelligence is driving up global technology goods prices, with local firms planning to pass these higher input costs on to consumers.