Another interest rate announced by the

Reserve Bank

October 2026 The Reserve Bank of Australia (RBA) has raised interest rates by 0.25 percentage points to 4.6 per cent, the highest cash rate in 15 years. The decision was unanimous, with all nine board members supporting the increase. The rise will put further pressure on homeowners with large mortgages, while people with high-interest savings accounts could benefit if banks pass on the increase. The RBA has acted because inflation remains above its 2–3 per cent target range. In July, headline inflation was 3.5 per cent, while underlying inflation was 3.6 per cent. The bank said it did not want high inflation to become embedded in the economy. Global factors are also adding pressure. Conflict in the Middle East has pushed energy prices higher, increasing inflationary pressures worldwide. According to the ABC, Economist Cherelle Murphy said the rate rise would hurt households already facing low consumer confidence, weaker house prices and financial pressure. BetaShares chief economist David Bassanese expects another 0.25 percentage point increase in coming months. Australian banks are expected to pass the full increase on to borrowers. Cotality estimates this year's four rate rises have reduced Australians' average borrowing capacity by almost $90,000, further limiting purchasing power and housing demand.

Greek Tribune Adelaide, South Australia