CNBC reported that a 25-basis-point rise took the Reserve Bank of Australia’s benchmark cash rate to 4.85%, its highest since November 2008, as September inflation hit 4.3%. It was the fifth increase in 2026.
CNBC said the bank was seeking to bring inflation under control as higher borrowing costs and living expenses weighed on households and economic activity.
September’s consumer price index reading climbed to 4.3%, compared with 4% in August, CNBC reported. Australia’s gross domestic product grew 2.1% year over year in the June quarter, down from 2.5% in the March quarter.
At the Reserve Bank of Australia’s September decision, Gov. Michelle Bullock described inflation as “too high,” citing higher oil prices associated with the Iran War and stronger domestic spending. She said additional rate increases would come “if that’s what’s needed to get inflation down,” CNBC reported.
The latest move follows the September increase to 4.60%, effective Sept. 30.