RBA raises cash rate to 4.60%, highest since 2011

The Reserve Bank of Australia unanimously raised its cash rate by 25 basis points to 4.60% on September 29, taking the benchmark to its highest level since 2011 and bringing the total increase this year to one percentage point. The board said inflation remained too high and left open the possibility of further increases if needed. The decision lifted the rate from 4.35% and marked the fourth increase in 2026. The RBA said recent data showed growth and inflation had been higher than expected, while some risks to inflation were materialising. The bank’s target range is 2% to 3% over the medium term. In its statement, the board cited higher energy costs and domestic capacity pressures. It said fuel-price increases had partly passed through to the prices of other goods and services. The RBA also pointed to global developments contributing to price pressures. It said it would do what it considered necessary to bring inflation sustainably back to target, including raising the cash rate further if required. The move came after three earlier increases this year and an unchanged rate at the August meeting.