RBA Raises Cash Rate to 4.60% for Fourth Time in 2026 Amid Inflation Concerns
The Reserve Bank of Australia (RBA) has raised the official cash rate to 4.60% for the fourth time in 2026, marking a total increase of 100 basis points this year.
The decision was made after considering recent inflation outcomes that were stronger than expected, with higher global energy prices and domestic capacity pressures contributing to the inflation outlook.
The RBA pointed to several sources of inflation pressure, including the widening conflict in the Middle East and higher global energy prices, as well as AI-related demand driving rapid growth in global prices for technology-related goods.
The bank's Board said that while economic growth had slowed, with consumer spending easing and housing prices falling in most capital cities, business investment and debt continued to grow strongly.