RBA Raises Rates to 15-Year High Amid Inflation Concerns

The Reserve Bank of Australia (RBA) raised its cash rate to a 15-year high of 4.60% on September 29, marking its fourth hike in 2026.

The decision was widely expected by economists and markets, with the RBA citing that inflation remained too high and that further hikes may be necessary to bring it back under control.

RBA Governor Michele Bullock noted that while the board considered keeping rates steady, they are now trying to anticipate how the four interest rate increases will impact the economy.

Markets are pricing in a 33% probability of another hike in November and almost fully expect a rise by February 2027.