14/10/2026
What’s next for interest rates in Australia?
The Reserve Bank of Australia (RBA) has warned that interest rates could rise again, but another increase is not certain.
In September, the RBA increased the cash rate to 4.60% because it was concerned that inflation was still too high.
Higher fuel and energy prices, rising business costs and stronger-than-expected inflation are making it harder to bring inflation down to the RBA’s target of 2–3%.
However, there are signs that higher interest rates are starting to work. Australians are spending less, property prices have fallen, and fewer people are taking out new home loans.
The RBA now needs to decide whether these changes will be enough to control inflation or whether interest rates need to rise further.
What happens next?
The RBA will closely watch inflation, jobs and household spending before making its next decision.
For homeowners with a mortgage, this means interest rates could rise again, but they could also stay the same. The next move will depend on how the economy performs.
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