Rates & Policy21 October 2026
The fourth rise this year, explained in plain English.
On 29 September 2026 the Reserve Bank of Australia raised the cash rate target by 0.25 percentage points to 4.60%. The decision was unanimous. It is the fourth increase this year, taking the cash rate up by a full percentage point since January.
The RBA said some upside inflation risks have materialised. Energy and fuel costs have risen as the Middle East conflict has widened, domestic capacity remains tight, and short-term inflation expectations are elevated. The Board said it wants to stop high inflation becoming embedded, and that it will keep considering further increases if needed.
Lenders set their own rates and decide how much of any change to pass on, so check with your lender. As a rough guide for a variable loan, a 0.25% rise on a $600,000 loan over 25 years adds roughly $90 a month to repayments. The full 1% of increases this year adds roughly $375 a month. These are illustrations only, not a quote for your loan.
Refinancing is not always the right move, as exit fees and other costs can apply. We will walk you through the full picture before you decide.
Source: Reserve Bank of Australia, Monetary Policy Decision, 29 September 2026. This article is general information only and does not take into account your personal circumstances.