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RBA raises cash rate to 4.60 per cent

The Reserve Bank of Australia lifted its cash rate target by 25 basis points on 29 September 2026, its fourth increase this year, and noted falling house prices in most capital cities.

James OkonkwoBy James Okonkwo, Cross-Border Capital Correspondent

Published 29 September 2026 at 4:54 pm GMT+8.

  • Data as of 29 September 2026
  • Official sources
The Reserve Bank of Australia's head office in Sydney seen from below, a grid of small square windows under a grey winter sky, with bare branches at the right.
The Reserve Bank of Australia's head office at 65 Martin Place, Sydney, in August 2025. Photo by Nick-D via Wikimedia Commons, licensed under CC BY-SA 4.0. Cropped and colour-graded from the original; this version is shared under the same licence.

The Reserve Bank of Australia's Monetary Policy Board decided on 29 September 2026 to increase the cash rate target by 25 basis points to 4.60 per cent, up from 4.35 per cent. The decision was unanimous. The statement said the three increases since the beginning of the year had tightened financial conditions, but that inflation was still too high and a further tightening was warranted.

On housing, the Board's statement said that "housing prices have fallen in most capital cities and new housing loans have declined noticeably." It also said "there are uncertainties about the economic effects of the downturn in the housing market."

For a buyer purchasing Australian property from overseas, the decision raises the benchmark behind variable Australian mortgage rates, so anyone financing the purchase with an Australian lender is likely to face higher repayments on the same loan if lenders pass the increase on. A buyer paying in cash from savings held in another country is not directly affected by the rate change, although the purchase price still has to be converted into Australian dollars on the day of settlement.

The Board said it will continue to do what it considers necessary to bring inflation back to target and will be attentive to the data.

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Sources

Sources read 29 September 2026.