On September 29, 2026, the Reserve Bank of Australia RBA resumed interest rate hikes, increasing the cash rate target from 4.35% to 4.6%, marking the highest level in nearly 15 years. This decision comes in response to rising energy costs and resilient domestic demand, which are expected to exacerbate inflationary pressures. The policy committee, consisting of nine members, unanimously voted for this fourth rate increase of the year. RBA Governor Michele Bullock is scheduled to address the media later. The RBA's decision to raise interest rates is a significant move in the current economic climate, where inflationary pressures are mounting due to global oil supply disruptions and domestic demand remaining robust.
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