RBA Rates Announcement Sep 2026

As expected, the RBA raised the official cash rate today for a fourth time this year, putting even more pressure on mortgage borrowers across Sydney.

With the benchmark rate now up to 4.60%, the RBA explained why they’d pushed it to a 15-year high following today’s 0.25% raise.

And why further rate hikes will be considered.

‘Inflation remains elevated and some of the upside risks flagged in August are materialising,’ said the RBA after a unanimous decision by its board.

‘The conflict in the Middle East has broadened and global energy prices are now much higher than had been assumed in the August forecasts.

‘AI-related demand is driving rapid growth in global prices for technology-related goods. And there remains pressure on domestic capacity.

‘Short-term measures of inflation expectations remain elevated. And recent inflation outcomes in Australia were stronger than expected at the previous meeting.’

Clearly three hikes hasn’t been enough to get on top of inflation in 2026.

In fact, the trimmed mean inflation rate, a metric keenly watched by the RBA, remains at 3.60% while headline inflation sits at 3.50%.

Both are above the 2–3% target range set by the Central Bank.

Australians are splashing the cash, too. Household spending rose 1.1% in July, well above the 0.3% forecast.

At the same time, the situation in the Middle East has flared again, sending the global oil benchmark up in price once more.

No wonder the RBA governor Michelle Bullock told a House of Representatives Economics committee in September that inflation is too high.

So, will we see back-to-back RBA hikes on Melbourne Cup Day as the rate edges closer to 5.0%?

Martin Place left that scenario open. ’The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed.’

Commercial lenders are already responding. ING announced that it would increase its fixed interest rates for owner-occupier and investor home loans by 0.2%.

Also this month, Comm Bank lifted its two-year fixed home loan rate to 6.82%, and other fixed rates by between 0.15–0.3 of a percentage point – with similar moves by other major banks.

In fact, some believe the RBA needs to tighten even more.

“To put a nail in the coffin of inflation, unequivocally, you need to get the cash rate to 5 per cent and above,” Christian Baylis, the co-founder of Fortlake Asset Management, said in the Financial Review.

If you are considering reviewing your current arrangements, reach out to Mortgage Broker Sydney.

Our friendly brokers can meet you wherever is most convenient: your home, office, or a local cafe.

In addition, we are here to guide you on various strategies such as uncovering lower rates, enhancing savings, consolidating debts, and alleviating the impact of rising household prices.