RBA Hikes Interest Rates Again Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has increased interest rates for the fourth time in 2026, bringing the official cash rate to its highest level since November 2011.

The decision was unanimous and reflected the bank's view that previous hikes had not yet fully taken effect on the economy. The RBA cited continued inflation as the primary driver for the increase, with some upside risks materialising in recent months.

Inflation remains elevated, at 4.60%, and is still above the target range of 2% to 3%. The bank believes that growth in aggregate demand needs to remain subdued to reduce capacity pressures and bring inflation back down.