RBA Raises Cash Rate Again Amid Inflation Worries

The Reserve Bank of Australia (RBA) increased the cash rate target by 25 basis points to 4.60 per cent on September 29, 2026. This is the third cash rate rise since the beginning of this year.

According to the RBA, inflation remains above the level it considers consistent with its target. The Board assessed that further tightening in financial conditions was necessary and made the decision unanimously.

The RBA highlighted several factors influencing its assessment of inflation risks, including the conflict in the Middle East leading to higher global energy prices. It also noted increases in global prices for technology-related goods, partly associated with demand linked to artificial intelligence-related investment.