RBA Cash Rate Decision, September 2026 — Target Raised 25 Basis Points to 4.60%
RBA (29 Sept. 2026): cash rate target up 25 basis points to 4.60%, effective 30 Sept.; unanimous. ABS data released the next day put annual CPI at 4.0% in August, above the 2–3% target.
Key figures (decision of 29 September 2026)
| Indicator | Previous | Current | Change vs previous | Change vs year ago | Evidence type |
|---|---|---|---|---|---|
| Cash rate target (RBA) | 4.35% (set from 6 May 2026; held 17 Jun and 12 Aug 2026) | 4.60% (effective 30 Sep 2026) | +0.25 pp (+25 basis points) | +1.00 pp (3.60% at the 1 Oct 2025 decision) | Issuer record (RBA cash rate target table); year-ago gap is this page's calculation |
| Interbank overnight cash rate (market rate) | 4.35% (29 Sep 2026) | 4.60% (30 Sep and 1 Oct 2026) | +0.25 pp | +1.00 pp (3.60% on 1 Oct 2025) | Issuer record (RBA Statistical Table F1); differences are this page's calculation |
| Australia CPI, annual (ABS, original) | 3.5% (12 months to Jul 2026) | 4.0% (12 months to Aug 2026) | +0.5 pp | +0.8 pp (3.2% in Aug 2025) | Issuer record (ABS); differences are this page's calculation |
| Trimmed mean, annual (ABS) | 3.6% (Jul 2026) | 3.6% (Aug 2026) | unchanged | — | Issuer record (ABS) |
| RBA inflation target | 2–3% a year | 2–3% a year | no change | no change | Issuer record (RBA monetary policy framework) |
As of 6 October 2026 (KST); decision announced 29 September 2026, effective 30 September 2026. Primary source: RBA Media Release 2026-27, "Statement by the Monetary Policy Board: Monetary Policy Decision" — https://www.rba.gov.au/media-releases/2026/mr-26-27.html[1][3]
In three lines 1. The RBA raised the cash rate target by 25 basis points to 4.60%, effective 30 September 2026; the decision was unanimous. 2. By the RBA's own decision table it is the fourth 0.25-point increase of 2026 (this page's count), after holds at 4.35% in June and August. 3. The Board said some of the upside inflation risks flagged in August are materialising. ABS figures released the day after the decision (30 September) put annual CPI at 4.0% in August, above the 2–3% target.[1][3][7]
Terms: pp = percentage points; 25 basis points = 0.25 pp. The decision date is the day of the media release (2.30 pm); any change takes effect the following day. The cash rate target is set by the Board; the cash rate is the market rate on unsecured overnight loans between banks.[3][6]
What the Board said (its own judgement, quoted)
On inflation: "Inflation remains elevated and some of the upside risks flagged in August are materialising." The statement lists a broadened Middle East conflict, global energy prices "much higher than had been assumed in the August forecasts", AI-related demand lifting global prices for technology-related goods, and pressure on domestic capacity. It adds that "recent inflation outcomes in Australia were stronger than expected at the previous meeting."[1]
On activity: output growth "has slowed but, at the margin, was stronger than expected in the June quarter"; housing prices "have fallen in most capital cities and new housing loans have declined noticeably"; labour market conditions "have eased broadly as expected in recent months"; growth in business investment and debt is strong.[1]
On the decision: the Board judged that "a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period" and said it will continue to do what it considers necessary, "including increasing the cash rate target further if needed."[1]
Cash rate target path, May 2025 to September 2026
| Effective date | Change (pp) | Cash rate target (%) |
|---|---|---|
| 30 Sep 2026 | +0.25 | 4.60 |
| 12 Aug 2026 | 0.00 | 4.35 |
| 17 Jun 2026 | 0.00 | 4.35 |
| 6 May 2026 | +0.25 | 4.35 |
| 18 Mar 2026 | +0.25 | 4.10 |
| 4 Feb 2026 | +0.25 | 3.85 |
| 10 Dec 2025 | 0.00 | 3.60 |
| 5 Nov 2025 | 0.00 | 3.60 |
| 1 Oct 2025 | 0.00 | 3.60 |
| 13 Aug 2025 | -0.25 | 3.60 |
| 9 Jul 2025 | 0.00 | 3.85 |
| 21 May 2025 | -0.25 | 3.85 |
Effective dates are the day after each decision. The target was 3.60% at the end of 2025 (Table F1, 31 December 2025) and is 1.00 pp higher now (this page's calculation).[3][4]
August and September statements side by side
11 August 2026 (hold at 4.35%): "With monetary policy judged to be somewhat restrictive, the Board decided to leave the cash rate target unchanged while it assesses how the economy is evolving." It said it would act "including increasing the cash rate target further if upside risks materialise", and that inflation "is not expected to return to around the midpoint of the target range until late 2027".[2]
29 September 2026 (rise to 4.60%): "Since the previous meeting, some of the upside risks to inflation are materialising." It adds that "Higher fuel prices have partially been passed through to prices of other goods and services." Both decisions were unanimous.[1]
Reading in pairs
Cash rate target vs cash rate. The target (4.60%) is the Board's setting. The cash rate is the rate actually paid on overnight interbank loans, published daily in Table F1; it was 4.60% on 30 September and 1 October 2026, matching the new target.[3][4]
Decision date vs effective date. The rise was announced at 2.30 pm on 29 September 2026; the RBA table lists it under 30 September 2026, because any change takes effect from the following day.[1][3][6]
Headline CPI vs trimmed mean. Headline annual CPI (4.0% to August) covers the whole CPI basket; the trimmed mean (3.6%) is one of the underlying measures the ABS publishes alongside it. Headline rose 0.5 pp between July and August while the trimmed mean did not move (this page's calculation).[7]
What comes next
Next Monetary Policy Board meetings: 2–3 November 2026 and 7–8 December 2026. The Board meets eight times a year and publishes its decision at 2.30 pm after each meeting.[5][6]
The ABS schedules the September 2026 monthly CPI for 28 October 2026, before the November meeting.[7]
The RBA says minutes of the monetary policy meetings are published two weeks after each meeting.[2][6]
Verified facts
Each fact is labelled with its evidence typeEach fact in this section carries its evidence type — either cross-checked against independent sources, or confirmed from a single authoritative record.
On 29 September 2026 the RBA's Monetary Policy Board increased the cash rate target by 25 basis points to 4.60 per cent; the decision was unanimous.[1] 1 source · authoritative record
The RBA's cash rate target table records the change as +0.25 percentage points effective 30 September 2026, after the target was set at 4.35% from 6 May 2026 and left unchanged on 17 June and 12 August 2026.[3] 1 source · authoritative record
In 2026 the table records 0.25-point increases effective 4 February (3.85%), 18 March (4.10%), 6 May (4.35%) and 30 September (4.60%); the target was 3.60% at the 1 October 2025, 5 November 2025 and 10 December 2025 decisions.[3] 1 source · authoritative record
RBA Statistical Table F1 shows the interbank overnight cash rate at 4.35% on 29 September 2026 and 4.60% on 30 September and 1 October 2026; it was 3.60% on 1 October 2025.[4] 1 source · authoritative record
On 11 August 2026 the Board left the cash rate target unchanged at 4.35 per cent; that decision was also unanimous.[2] 1 source · authoritative record
The ABS reported that Australia's CPI rose 4.0% in the 12 months to August 2026, up from 3.5% in the 12 months to July 2026 (3.2% in August 2025); trimmed mean inflation was 3.6%, unchanged.[7] 1 source · authoritative record
The RBA's monetary policy framework targets consumer price inflation of 2–3 per cent per annum. The Board meets eight times a year, publishes its decision at 2.30 pm after each meeting, and any change in the cash rate target takes effect the following day.[3][6] 1 source · authoritative record
The RBA's published schedule lists Monetary Policy Board meetings on 2–3 November 2026 and 7–8 December 2026; the 2027 schedule begins with 8–9 February 2027.[5] 1 source · authoritative record
Statements and readings
Not counted as facts — each item shows what kind of statement it isFrom here on: statements not counted as facts — single-source reports, the issuing body’s own statements, and this page’s own readings, each labeled.
The Board said inflation remains elevated and some of the upside risks flagged in August are materialising, citing a broadened Middle East conflict, global energy prices much higher than assumed in the August forecasts, AI-related demand raising global prices for technology-related goods, and pressure on domestic capacity.[1] Stated by the issuing body itself (primary source) · not independently verified · RBA Monetary Policy Board statement, 29 September 2026 (the Board's assessment)
The Board judged that a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period, and said it may increase the cash rate target further if needed.[1] Stated by the issuing body itself (primary source) · not independently verified · RBA Monetary Policy Board statement, 29 September 2026 (the Board's assessment)
In August the Board judged monetary policy to be somewhat restrictive and did not expect inflation to return to around the midpoint of the target range until late 2027, with upside risks to that projection.[2] Stated by the issuing body itself (primary source) · not independently verified · RBA Monetary Policy Board statement, 11 August 2026 (the Board's assessment at the previous meeting)
The cash rate target is 1.00 percentage point higher than a year earlier (3.60% at the 1 October 2025 decision) and 1.00 point higher than at the end of 2025, after 4 increases of 0.25 point in 2026.[3][4] This page’s own calculation or reading · This page's calculation from the RBA cash rate target table and Table F1
Annual CPI of 4.0% in August 2026 is 1.0 percentage point above the top of the RBA's 2–3% target range; the trimmed mean (3.6%) is 0.6 point above it.[6][7] This page’s own calculation or reading · This page's calculation from ABS and RBA figures
Timeline
- 2026-02-04
Cash rate target raised 0.25 point to 3.85% (effective date).[3]
- 2026-03-18
Cash rate target raised 0.25 point to 4.10% (effective date).[3]
- 2026-05-06
Cash rate target raised 0.25 point to 4.35% (effective date).[3]
- 2026-08-11
Board leaves the cash rate target unchanged at 4.35%.[2]
- 2026-09-29
Board raises the cash rate target 25 basis points to 4.60%; unanimous.[1]
- 2026-09-30
New target takes effect; interbank overnight cash rate 4.60%.[3][4]
- 2026-10-28
ABS scheduled release of the September 2026 CPI.[7]
- 2026-11-03
Second day of the next Monetary Policy Board meeting (2–3 November 2026).[5]
What this page could not establish
These are questions this page tried to answer and could not. The gaps are left open rather than filled with a guess.- The minutes of the 28–29 September 2026 meeting
- The outcome of the 2–3 November 2026 meeting
- Model
- claude-opus-5
- Time
- 10/06/2026, 02:00
- Body characters
- 5,533
- Sources
- 7 sources adopted
- Model
- ChatGPT (checked sources on the web)
- Time
- 10/06/2026, 12:42
- Verdict
- Revision required
Show revision history (4)
| 10/06/2026, 09:00 | First authored (claude-opus-5) | Created |
| 10/06/2026 | First version. Read in full the RBA statements of 29 September and 11 August 2026, the cash rate target table, Statistical Table F1, the 2026–2027 meeting schedule, the About Monetary Policy page and the ABS August 2026 CPI release; quotations, table rows and figures machine-matched against the source text. | Updated |
| 10/06/2026 | Pre-publication review findings checked against the sources; confirmed ones applied: the August CPI is labelled as ABS data released the day after the decision, the minutes timing follows the RBA's wording (two weeks after each meeting), and FAQ answers name the cash rate target. | Updated |
| 10/06/2026 | Independent pre-publication review (ChatGPT) against the sources; findings confirmed by the source text were applied. | Updated |
Frequently asked
What is the RBA cash rate target now?
4.60%, effective 30 September 2026. The Board raised the target by 25 basis points at its 29 September meeting; RBA Table F1 shows the interbank overnight cash rate also at 4.60% on 30 September and 1 October 2026.[1][3][4]
Did the RBA raise interest rates in September 2026?
Yes, by 25 basis points to 4.60% on 29 September 2026. The decision was unanimous.[1]
Why did the RBA raise rates?
The Board raised the target 25 basis points because, in its words, some of the upside risks to inflation flagged in August are materialising. It cited higher global energy prices, AI-related demand for technology goods, pressure on domestic capacity and inflation outcomes stronger than expected.[1]
When is the next RBA meeting?
2–3 November 2026, per the RBA's published schedule. The decision is published at 2.30 pm after the meeting; the following meeting is 7–8 December 2026.[5][6]
What is Australia's inflation rate?
4.0% in the 12 months to August 2026 (ABS), with the trimmed mean at 3.6%. The RBA's target is 2–3%.[6][7]
How many times has the RBA raised rates in 2026?
4 times, by 0.25 point each, effective 4 February, 18 March, 6 May and 30 September 2026 (this page's count from the RBA table). The target was held at 4.35% in June and August.[3]
How much higher is the cash rate target than a year ago?
1.00 percentage point higher: a target of 4.60% now versus 3.60% at the 1 October 2025 decision (this page's calculation).[3]
Was the September 2026 decision unanimous?
Yes, the 29 September 2026 decision was unanimous, according to the RBA statement.[1]
Official links
Sources
- [1] Statement by the Monetary Policy Board: Monetary Policy Decision (Media Release 2026-27, 29 September 2026) primary
- [2] Statement by the Monetary Policy Board: Monetary Policy Decision (Media Release 2026-19, 11 August 2026) primary
- [3] Cash Rate Target — table of interest rate decisions primary
- [4] Statistical Table F1: Interest Rates and Yields – Money Market (daily, publication date 2 October 2026) primary
- [5] Board meeting schedules 2026 and 2027 primary
- [6] About Monetary Policy primary
- [7] Consumer Price Index, Australia, August 2026 (released 30 September 2026) primary