The Reserve Bank of Australia raised its cash rate target by 25 bps to 4.60% in a unanimous decision at its September 2026 meeting, in line with expectations, bringing borrowing costs to their highest since 2011 and citing renewed upside risks to inflation. Policymakers noted that higher global energy prices following oil supply disruptions amid the broader Middle East conflict, stronger-than-expected recent inflation and persistent domestic capacity pressures are adding to price pressures. AI-related demand is driving increases in global technology goods prices, while firms report rising costs and plans to pass them on. Meanwhile, output growth slowed but was slightly stronger than expected in Q2, while consumer spending is easing, housing prices have fallen in most capital cities and new housing loans have declined. Labour market conditions have also eased. The Board said further tightening may be needed to prevent inflation from becoming embedded and return it sustainably to target.