RBA expected to lift cash rate to 4.6% on Tuesday
The Reserve Bank of Australia is widely expected to raise its cash rate by 25 basis points to 4.6% on Tuesday, its fourth hike of 2026. That would take rates to their highest level since 2011.
Thirty-three of 34 economists polled by Reuters expect the move. All four major banks, CBA, Westpac, NAB and ANZ, forecast the quarter-point rise, and markets are pricing about a 95% chance of a hike. The increase would push typical mortgage rates to about 6.5% and add more than $100 a month to average repayments.
The drivers cited include sticky inflation, economists said. Trimmed-mean inflation was 3.6% in July, above the RBA’s 3.3% end-year forecast. Oil prices are above $100 amid the Iran war, and Governor Michele Bullock has sent hawkish signals.
The decision will be announced on Tuesday, 29 September. Borrowers and markets are braced for higher mortgage repayments if the expected hike goes ahead.
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