Statement by the Monetary Policy Board: Monetary Policy Decision

The Monetary Policy Board decided to increase the cash rate target by 25 basis points, raising it to 4.60 per cent. This unanimous decision was made in light of elevated inflation, materializing upside risks, and recent stronger-than-expected inflation outcomes in Australia. The Board judged that a further tightening in financial conditions is warranted given these developments.

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Number

2026-27

Date

29 September 2026

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 4.60 per cent.

Inflation remains elevated and some of the upside risks flagged in August are materialising. The conflict in the Middle East has broadened and global energy prices are now much higher than had been assumed in the August forecasts. AI-related demand is driving rapid growth in global prices for technology-related goods. And there remains pressure on domestic capacity. Liaison indicates that firms are experiencing cost pressures and are either increasing the prices of their goods and services or looking to do so. Short-term measures of inflation expectations remain elevated. And recent inflation outcomes in Australia were stronger than expected at the previous meeting.

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Source: Reserve Bank of Australia — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works