Financial News: Australia Lifts Interest Rate To 4.60%; Highest Since

Australia Lifts Interest Rate To 4.60%; Highest Since Late 2011

09/29/2026 - 05:52:00 (RTTNews)

(RTTNews) - The Reserve Bank of Australia raised its benchmark rate by a quarter-point on Tuesday, taking it to a 15-year high level, as risks to inflation materialized amid geopolitical tensions.

The policy board, governed by Michele Bullock, unanimously decided to raise the cash rate target to 4.60 percent, the highest level since late 2011. The decision came in line with expectations.

The decision marked the third rate hike since the beginning of the year, further tightening financial conditions across the economy. Although the economy showed signs of slowing, inflation remained high.

"...inflation is still too high and the Board judged that, in light of recent developments, a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period," the bank said in a statement.

The board said it will continue to do what is necessary to bring inflation sustainably back to target, including raising the interest rate further if needed.

Policymakers observed that some of the upside risks to inflation materialized. Moreover, there were further disruptions to global oil supply and growth and inflation in Australia were higher than expected.

Higher fuel prices have partially been passed through to prices of other goods and services. This inflation impulse is in addition to the effect of capacity pressures in the economy, they noted.

The board acknowledged that the unresolved Middle East conflict creates scenarios where inflation could remain elevated and economic activity could be weaker than currently forecast.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Index Falls More Than Expected In October (03 hr(s), 25 min(s), 50 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. has deteriorated by more than expected in the month of ...Full Story»

Brazil Inflation Rises To 4.58% In September (03 hr(s), 24 min(s), 50 sec(s) ago)
(RTTNews) - Brazil's consumer price inflation accelerated in September to the highest level in ...Full Story»

Portugal Trade Deficit Narrows In August (04 hr(s), 55 min(s), 50 sec(s) ago)
(RTTNews) - Portugal's foreign trade shortfall decreased in August from a year ago, as exports ...Full Story»

Swiss Consumer Confidence Rises Slightly In September (05 hr(s), 54 min(s), 50 sec(s) ago)
(RTTNews) - Consumers in Switzerland remained marginally less pessimistic in September, survey dat ...Full Story»

Turkey Industrial Output Falls 1.9% (06 hr(s), 23 min(s), 50 sec(s) ago)
(RTTNews) - Turkey's industrial production declined in August due to the contraction in manufa ...Full Story»

Lithuanian Trade Gap Narrows In August (06 hr(s), 31 min(s), 50 sec(s) ago)
(RTTNews) - Lithuania's foreign trade deficit decreased in August from a year ago as exports g ...Full Story»

Romania Q2 GDP Contracts Less Than Estimated (06 hr(s), 47 min(s), 50 sec(s) ago)
(RTTNews) - Romania's economy shrank for the second straight quarter in the three months endin ...Full Story»

Japan Machine Tool Orders Surge 60.4% In September (07 hr(s), 59 min(s), 50 sec(s) ago)
(RTTNews) - Japan's machine tool order growth remained sharp in September despite easing since ...Full Story»