π¦ The Reserve Bank of Australia raised its cash-rateβ¦
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π¦ The Reserve Bank of Australia raised its cash-rate target from 4.35% to 4.6% on 29 September, its fourth increase of 2026 and the highest setting since 2011.
The bank cited persistent inflation risks, including higher costs linked to the Middle East conflict and the AI investment boom. Governor Michele Bullock said inflation had been too high for most of the past six years.
The higher cash rate is likely to increase costs for borrowers where lenders pass it through to variable mortgages. ABC News estimated beforehand that a full 25-basis-point pass-through would add about A$91 a month to repayments on a A$600,000 loan. π
The RBA said the economy was slowing as expected but left open the possibility of further rate rises if needed to return inflation sustainably to its 2β3% target range.
The Monetary Policy Board will continue to assess inflation, economic activity and financial conditions at its scheduled meetings before determining its next move.
https://nutanica.com/Reserve_Bank_of_Australia
The bank cited persistent inflation risks, including higher costs linked to the Middle East conflict and the AI investment boom. Governor Michele Bullock said inflation had been too high for most of the past six years.
The higher cash rate is likely to increase costs for borrowers where lenders pass it through to variable mortgages. ABC News estimated beforehand that a full 25-basis-point pass-through would add about A$91 a month to repayments on a A$600,000 loan. π
The RBA said the economy was slowing as expected but left open the possibility of further rate rises if needed to return inflation sustainably to its 2β3% target range.
The Monetary Policy Board will continue to assess inflation, economic activity and financial conditions at its scheduled meetings before determining its next move.
https://nutanica.com/Reserve_Bank_of_Australia
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