Australia's central bank raises cash rate to 4.6 percent, a 15-year high, to curb inflation

On September 29, 2026, the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.6 percent, a 15-year high, marking the fourth hike this year. The decision was driven by core inflation running at 3.6 percent, above the central bank's target range. The rate increase is expected to further cool Australia's housing market, which has already shown signs of slowdown, with auction clearance rates dropping to a 10-week low of 50.3 percent. The RBA signaled it may hike rates again if inflation remains elevated.