The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.85%, the highest since November 2008 and its fifth hike in 2026. The decision passed 6–3, reflecting divided views on the board. September CPI rose 4.3% year on year, up from 4% in August, and the RBA expects inflation to stay elevated through most of 2027, returning to the 2–3% target only by late 2027, three quarters later than previously forecast. Q2 GDP growth slowed to 2.1% year on year from 2.5% in Q1. Governor Michelle Bullock said a recession is not the central scenario.
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Original headline: Tăng 5 lần trong 10 tháng, một quốc gia vừa nâng lãi suất lên mức cao nhất 18 năm để chống lạm phát
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- Hard choices ahead for Reserve Bank : deputy governor
Traders raised bets on a November rate hike after RBA deputy governor Andrew Hauser said the board was considering further increases, even though this would hurt activity and unemployment. Odds for a Melbourne Cup day hike had lengthened after softer September jobs data, but Hauser said the November meeting remained live and the bank faced 'hard choices'. He said a growing share of businesses saw inflation of around 3.5 per cent as the new normal, a scenario the central bank cannot accept, and that much of the oil price rise had yet to be passed on. Inflation data for the September quarter, due October 28, will be pivotal, while economists said the jobless rate rising to 4.7 per cent eased pressure to hike again.
- Australia raises interest rates to 18-year high
The Reserve Bank of Australia raised its cash rate by 25 basis points (0.25%) to 4.85%, its highest since November 2008 and the fifth hike this year. The move aims to curb inflation, with September CPI rising 4.3%, and the RBA expects inflation to stay above the 2-3% target until late 2027. Governor Michelle Bullock called inflation 'too high', mainly due to oil prices amid Middle East conflict and AI investment pushing up tech-related prices, and said rates would rise further if needed. She dismissed recession as the likely scenario, as Q2 GDP grew 2.1% year on year, down from 2.5% previously. The US and Canada raised rates for the first time in over 3 years, while the BOJ lifted its rate to a 31-year high in September.
- Australia lifts rates to 18-year high as AI boom, energy costs fuel inflation
The Reserve Bank of Australia (RBA) raised its benchmark rate by 25 basis points to 4.85%, the highest level in 18 years. It warned inflation would stay elevated through much of 2027, as energy costs and AI-related investment pushed up prices for technology goods, while fuel and commodity prices rose amid the Middle East conflict. The board voted 6–3 for the increase, with three members preferring to hold at 4.60%. It pushed back its forecast for inflation to return to the top of its 2%–3% target range until late 2027, about three quarters later than previously expected. Treasurer Jim Chalmers said the decision, though widely expected, is difficult news for families and businesses, and it contrasts with the US Federal Reserve's decision to hold rates last week.
- Australia hikes rates to 18-year high to fight inflation
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85% on Tuesday, its highest level since November 2008 and in line with Reuters poll expectations. It was the fifth rate hike this year. Consumer prices rose 4.3% in September, up from 4% in August and the highest since March. RBA Governor Michelle Bullock said inflation is “too high”, driven by higher oil prices from the Iran War and stronger domestic spending, and that more hikes could come “if that's what's needed to get inflation down.” GDP grew 2.1% in the June quarter from a year earlier, slowing from 2.5% in March, and Bullock said a recession is “not our base case at the moment.”
- Statement by the Monetary Policy Board: Monetary Policy Decision
The RBA Board raised the cash rate target by 25 basis points to 4.85 per cent, saying inflation remains elevated and broadly based. The inflation outlook was revised materially higher, partly due to fuel and commodity prices affected by the Middle East conflict, with domestic capacity pressures slightly tighter than thought. Inflation is now forecast to stay elevated through much of 2027 and reach the top of the 2–3 per cent target range only in late 2027, about three quarters later than before. The economy is slowing, housing prices have fallen significantly and unemployment has risen. The decision was by majority: six members voted to raise, while three voted to hold at 4.60 per cent.
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