The Reserve Bank of Australia (RBA) raised its benchmark interest rate to 4.60% in September 2026, up from 4.35% in August 2026, extending its monetary tightening cycle. The decision marks another step in the central bank’s effort to rein in economic imbalances, with borrowing costs now at their highest point of the current cycle.
The move, confirmed in data updated on 29 September 2026, signals that policymakers remain focused on containing pressures in the Australian economy, even as higher rates weigh on households and businesses. With the cash rate now at 4.60%, markets will be watching closely for any signs from the RBA on how much further policy may need to tighten, or whether the central bank is approaching a plateau in its rate path.
