The RBA raised the cash rate +25bps to 4.60%, its fourth increase since the beginning of 2026. The decision was unanimous, with the Board saying some of the upside inflation risks identified in August are now materializing.

• The RBA highlighted higher global energy prices, further oil supply disruptions from the Middle East conflict, rapid increases in technology-related goods prices and persistent domestic capacity pressures. Recent Australian inflation and growth data have also been stronger than expected.
• Higher fuel prices have begun to pass through to prices of other goods and services, while short-term inflation expectations remain elevated and firms continue to report cost pressures. The RBA said this inflation impulse is adding to existing capacity pressures in the economy.
• The Board said the three previous 2026 rate increases have tightened financial conditions and the economy appears to be slowing, with labor market conditions easing and consumer spending growth moderating. But inflation remains too high, and the RBA said it remains prepared to raise rates further if needed to return inflation sustainably to target.