29/09/2026
RBA UPDATE | Effective September 29, 2026
After two consecutive holds, the Reserve Bank of Australia (RBA) has raised the cash rate by 0.25% at 4.60%, marking the fourth increase this year. This unanimous decision brings the cash rate to its highest in 15-years, since November 2011. The increase in cash rate is an attempt to slow down inflation in the economy.
The RBA has stated that inflation has remained elevated, and some risks that was flagged in August has been materialising, where global energy prices higher than predicted in August forecast with the conflict in the Middle East broadening. Increased use of AI and AI-related demands have also contributed to rapid growth in global prices for technology-related goods.
Finance Brokers Association Australia (FBAA) and Mortgage & Finance Association of Australia (MFAA) both advises mortgage holders for action to be taken before higher repayments take effect.
“A rate rise affects every household differently. The important thing is to know where you stand rather than assuming there is nothing you can do,” MFAA CEO, Anja Pannek comments, urging borrowers to speak to their mortgage brokers to understand their position and options.
Leo Gagic, FBAA new CEO encourages mortgage brokers to contact their clients first. “A simple conversation can provide reassurance, help a client understand what this increase means for them and identify whether their lending arrangements should be reviewed.” Gagic adds, this is the support clients need at this time with making informed decisions.
If you’re feeling the pressure, or unsure how this change impacts your mortgage or borrowing capacity, consider reviewing your loan. A mortgage broker can help with a no-obligation review.
The RBA’s next meeting is scheduled for Tuesday, November 3.
