RBA raises cash rate to 4.60% in fourth hike of 2026
CIE News ·
Australia's central bank unanimously raised its cash rate by 25 basis points to 4.60% on September 29, 2026, marking a 15-year high amid persistent energy and AI-driven inflation pressures.
On September 29, 2026, the Reserve Bank of Australia raised its official cash rate target by 25 basis points to 4.60%, reaching its highest level since 2011. According to businesstimes.com.sg, the monetary policy board voted unanimously for the decision, which marks the central bank's fourth rate increase this year and brings cumulative tightening in 2026 to 100 basis points.
The board stated that upside risks to inflation are materializing as both domestic economic growth and price pressures exceeded previous forecasts. Policymakers cited climbing global energy costs tied to Middle East tensions alongside heavy demand for artificial intelligence infrastructure as ongoing drivers of persistent inflation, according to reports from gurufocus.com and businesstimes.com.sg.
Businesstimes.com.sg reported that the RBA remains open to further rate hikes if required to return inflation to its 2% to 3% target range. The tighter monetary stance forms part of a broader global policy trend that continues to limit macroeconomic risk appetite across digital asset markets.