RBA lifts cash rate to 4.60% in fourth hike of 2026

What's happening

The Reserve Bank of Australia's Monetary Policy Board raised the cash rate target by 25 basis points to 4.60% on Tuesday 29 September 2026. It is the fourth increase this year, and the Board said the vote was unanimous.

In its statement, the Board said inflation remains elevated and that some of the upside risks it flagged in August are now playing out. It concluded that a further tightening in financial conditions was warranted to bring inflation back to target, even after three earlier increases this year.

The key details

The RBA pointed to several pressures behind the decision. Global energy prices have run higher than the assumptions in its August forecasts, and higher fuel costs are partly flowing into other prices. Demand linked to artificial intelligence is also pushing up prices for technology goods, while firms continue to report rising costs.

• New cash rate target: 4.60%, up from 4.35%
• Fourth increase of 2026; ABC reporting described it as the highest level since November 2011
• Short-term inflation expectations remain elevated, according to the Board
• Output growth has slowed but was stronger than expected in the June quarter
• The Board noted housing prices have fallen in most capital cities and new housing loans have declined noticeably
• The ACTU estimated the latest move adds about $110 a month to repayments on an average $731,000 mortgage

The statement did not include specific inflation figures, describing recent outcomes as stronger than expected.

Timeline and next steps

Lenders set their own timing for passing on the change. Macquarie Bank said it would lift its variable home loan reference rates by the full 0.25 percentage points from 15 October. The RBA said it will remain attentive to incoming data and may raise the cash rate further if required. Several bank economists quoted by the ABC flagged another move as possible at the November meeting, after the September quarter inflation figures are released in late October.

What it means for Gold Coast property owners and developers

Higher borrowing costs reduce how much buyers can borrow, and that typically shows up quickly in auction results and buyer numbers. Cotality's figures for the week after the decision showed weaker auction outcomes across south-east Queensland, which is consistent with buyers recalculating their budgets. Owners with variable-rate loans should expect repayment increases once their lender passes on the change.

For developers and site buyers, rising rates lift holding and construction finance costs and can affect project feasibility and presale timing. Anyone planning a sale or acquisition in the months ahead may wish to stress-test their numbers against the possibility of further increases and seek independent financial advice.

Frequently asked questions

What is the cash rate now?

The RBA's cash rate target is 4.60%, following the 25 basis point increase announced on 29 September 2026.

Why did the Reserve Bank raise rates again?

The Board said inflation remains elevated, energy and fuel costs are higher than expected, domestic capacity pressures persist and short-term inflation expectations are still high.

When will my home loan rate change?

That depends on your lender. Banks announce their own changes and effective dates; Macquarie, for example, said its variable reference rates would rise from 15 October.

Source: Reserve Bank of Australia, published 29 September 2026. This article is an independent summary and commentary by GC Prestige based on the original report — read the source for full details.