RBA Lifts Rates 25 Basis Points to 4.6% as Energy and AI Stoke Inflation
Updated
Updated · CNBC · Sep 29
RBA Lifts Rates 25 Basis Points to 4.6% as Energy and AI Stoke Inflation
3 articles · Updated · CNBC · Sep 29
Summary
Australia’s central bank raised the cash rate to 4.6% on Tuesday—its highest in 15 years and fourth increase of 2026—while signaling it could tighten further.
The RBA said upside risks flagged in August are now materializing, with the widening Middle East conflict pushing energy prices higher and AI-driven demand lifting technology goods prices.
Inflation was 3.5% in July, above the RBA’s 2%-3% target, after peaking at 4.6% in March; August data due Wednesday will test whether price pressures are accelerating again.
Markets barely moved after the decision, but the bank warned inflation could stay higher and growth weaker than forecast, with GDP already slowing to 2.1% in the second quarter from 2.5%.