RBA Set for Record-Breaking Interest Rate Hike

The Reserve Bank of Australia (RBA) is expected to raise interest rates for a fourth time in 2026, which will push the average owner-occupier variable rate up to 6.49 per cent.

A 25-basis point increase in the cash rate would add $91 a month on a typical $600,000 mortgage, said Sally Tindall, data insights director at financial comparison site Canstar.

This will be the highest experienced by a generation of borrowers, with the cash rate set to reach 4.6 per cent.

RBA governor Michele Bullock has suggested that unemployment needs to be between 4.5 and 5.0 per cent to help get inflation back under control.