Reserve Bank Set to Lift Cash Rate to 4.85% as September Inflation Hits 4.3%
Updated
Updated · Sydney Morning Herald · Oct 28
Reserve Bank Set to Lift Cash Rate to 4.85% as September Inflation Hits 4.3%
3 articles · Updated · Sydney Morning Herald · Oct 28
Summary
A Melbourne Cup Day rate rise now looks all but certain after Australia’s September CPI came in at 4.3%, with underlying inflation at 3.6%—both still well above the RBA’s 2-3% target.
Four rate hikes this year have not contained price pressures, and another increase would take the cash rate to an 18-year high of 4.85% as the bank tries to curb demand.
Brent crude at $115 a barrel and a global chip shortage are driving the latest surge, lifting costs from fuel and fertiliser to consumer electronics and games.
Games and toys prices jumped 15.5% over 12 months, computer equipment rose 6.3%, and SK Hynix said chip shortages could persist until 2030 as AI-led data-centre demand outstrips supply.
The report argues fiscal policy must do more: Canberra is heading for a A$31.5 billion deficit, while Treasury warns the data-centre boom is competing with housing and infrastructure for labour and resources.