RBA Slams Brakes on Inflation with Fourth Rate Hike in 2026

The Reserve Bank of Australia (RBA) raised its benchmark borrowing rate to 4.6 per cent, its highest in nearly 15 years, in a decision made on Tuesday.

This is the fourth interest rate hike in 2026 and will see average mortgage holders paying around $450 more each month than they did in February.

RBA governor Michele Bullock acknowledged that this decision would be difficult for households with mortgages and businesses with loans, but emphasized that high inflation affects all Australians.

Trimmed mean inflation, the RBA's preferred measure, is currently at 3.6 per cent, well above its target range of 2-3 per cent.