RBA raised the cash rate to 4.60% in September

This article explains a release dated 29 September 2026. Figures and conditions relate to that release and may have changed since.

The Reserve Bank of Australia increased its cash rate target by 0.25 percentage points to 4.60% on 29 September 2026. The decision was unanimous, according to the Monetary Policy Board’s September statement.

The Board said inflation remained too high, with some previously identified risks becoming more apparent. It pointed to energy prices, pressure on domestic capacity and recent inflation outcomes that exceeded its earlier expectations. It also recognised that economic growth was slowing and housing activity had weakened.

That tension was central to the decision: a softer housing market did not, by itself, remove the Board’s concern about inflation. The statement kept future decisions dependent on incoming information and included the possibility of further tightening. It did not promise a particular path for mortgage rates.

For a homeowner, the cash rate is an input into the lending environment rather than the interest rate printed on a mortgage statement. ASIC Moneysmart explains that lenders decide whether to change variable rates and by how much. A fixed rate generally remains unchanged during its agreed period, although the loan can move to a variable rate afterwards.

The immediate household question therefore concerns the loan’s terms and any notice from the lender. A national announcement alone does not specify the date a particular repayment changes, the amount of that repayment or the treatment of a fixed portion of a split loan.

Our interpretation is that separating those stages makes the news easier to use. The Board makes a policy decision; the lender communicates any product change; the household can then examine the effect on its own budget. Treating these as separate steps helps avoid assuming that all borrowers experience the announcement identically.

This article documents the September decision as a historical development. Readers assessing their current position should use the latest lender information and policy announcement, rather than treat this archived 4.60% figure as today’s cash rate.

General information, not personal financial advice. Consider your circumstances and check current lender or program conditions before making a decision.