The Reserve Bank of Australia (RBA) has increased the cash rate by 0.25 percentage points to 4.85%, marking its fifth rise this year. Read the full statement here.
The latest inflation figures have reinforced concerns that price pressures are proving difficult to contain. Australian Bureau of Statistics data showed annual inflation rising from 4.0% in August to 4.3% in September, while underlying inflation increased from 3.5% to 3.6%. Both measures remain above the RBA’s 2%–3% target.
The RBA had already highlighted the risks of persistently high inflation. In the minutes of its September meeting, the Board identified three key risks: higher oil prices driven by the Middle East conflict, growing cost pressures from the global AI boom and greater constraints on the Australian economy’s capacity to meet demand. Members warned that these pressures could keep inflation elevated and indicated they were prepared to raise interest rates further if necessary.
Another rate rise is likely to add to the pressure on mortgage holders, particularly those already managing higher repayments.
However, competition between lenders means there may still be opportunities to negotiate a better rate or refinance. If you’d like to understand how the latest increase affects your repayments or explore your options, I’m here to help.
Kind Regards,
Rob Haynes
0411 020 407