Cash Rate Tracker
The RBA cash rate, in plain English for borrowers.
Where the rate sits today, what the latest decision means for your home loan... and what I would actually do about it.
Current cash rate
4.60%
Raised · 29 September 2026
The Reserve Bank board raised the cash rate target by 25 basis points to 4.60%, resuming the increases it paused in June after rises in February, March and May.
- Next decision
- 3 November 2026
- Set by
- Reserve Bank
What just happened
Four rises this year, and the highest rate since 2011.
The Reserve Bank raised the cash rate by 0.25% to 4.60% on 29 September 2026, after holding at 4.35% in June and again in August. That is four rises this year, following increases in February, March and May, and it takes the cash rate to its highest setting since October 2011.
The board said recent inflation outcomes were stronger than expected. It pointed to global energy prices running well above its August assumptions after the conflict in the Middle East broadened, AI-related demand lifting global technology prices, and firms still facing cost pressures they are passing on. It also said it would raise the cash rate further if needed to return inflation to target.
On 16 September (US time) the US Federal Reserve raised its own rate by 0.25%. That does not set Australian rates... I explain how a US move actually reaches Australian borrowers here.
For borrowers, a rise is usually passed on to variable rates within a week or two, and the letter tends to arrive quietly. What almost nobody does is check whether the rate they are being moved to is still competitive. I have set out what this rise actually costs on your loan size, including what to do if your fixed rate ends soon. Checking the rate you are on is what a refinance review is for.
What's expected next
What the board said, and what happens from here.
The board lifted the cash rate to 4.60%, its highest setting since October 2011. It pointed to inflation coming in stronger than expected, higher global energy prices after the conflict in the Middle East broadened, AI-driven demand lifting global technology prices, and firms still passing on cost pressures. It also said it would raise rates further if needed to bring inflation back to target.
What it costs a borrower
About $91 a month
On a $600,000 loan with 25 years remaining, a 0.25% rise adds roughly $91 to the monthly repayment. Your own figure depends on your balance, rate and term.
What is expected next
3 November
All four major banks now expect a second 0.25% rise on 3 November, taking the cash rate to 4.85%. CBA and NAB revised their calls this week after hot September quarter inflation data. Forecasts are not decisions.
Forecasts are the published views of each bank's economics team as at 28 October 2026, after CBA and NAB joined Westpac and ANZ in tipping a November rise. CBA's own research put market pricing for a November rise at around 90%, up sharply after the September quarter inflation data. They are general market commentary, not a prediction or recommendation, and they change as new data lands.
Recent decisions
The last few meetings.
- 3 November 2026Decision duetipped 4.85%
- 29 September 2026Raised 0.25%4.60%
- 11 August 2026Held4.35%
- 16 June 2026Held4.35%
- 5 May 2026Raised 0.25%4.35%
- 17 March 2026Raised 0.25%4.10%
- 3 February 2026Raised 0.25%3.85%
Source: RBA cash rate statistics.
What you can actually control
The rate is the RBA's call. Your borrowing power is yours.
You cannot move the cash rate. What you can move is how your income, debts, ownership structure and lender choice are put together... and that is what decides how much you can actually borrow at any rate.
The Borrowing Power Framework walks through the four levers that move the number, in plain English. Complimentary download.
Get the Borrowing Power FrameworkCommon questions
Cash rate questions, answered.
What is the current RBA cash rate?
The RBA cash rate target is 4.60%. The Reserve Bank raised it by 0.25% on 29 September 2026, its highest setting since October 2011, after holding at 4.35% in June and August.
When is the next RBA interest rate decision?
The next Reserve Bank board meeting is on 3 November 2026, with the decision announced in the afternoon AEDT. The board meets eight times a year. You can see the full schedule on the RBA website.
Will interest rates go down in 2026?
Nobody can say for certain, and forecasts change with the data. The board raised the cash rate to 4.60% on 29 September 2026 and said it would raise further if needed to return inflation to target. As at 28 October 2026, all four major banks, CBA, Westpac, NAB and ANZ, expect a second 0.25% rise on 3 November, which would take the cash rate to 4.85%. September quarter figures showed trimmed mean inflation at 3.7% over the year (1.0% for the quarter), still above the 2 to 3% target band and hotter than expected. The board has said it will be attentive to the data, so the path from here is not set.
Does a US Federal Reserve rate rise change Australian mortgage rates?
Not directly. The US Federal Reserve raised its target range by 0.25% to 3.75% to 4.00% on 16 September 2026 (US time), but the Reserve Bank of Australia sets the Australian cash rate itself and lenders set their own home loan rates. A US move can influence the Australian dollar and global bond markets, which the RBA takes into account, but it does not automatically change Australian variable rates.
How does the cash rate affect my mortgage?
The cash rate is the rate the RBA targets for overnight lending between banks. It is not your mortgage rate, but lenders often move variable home loan rates in a similar direction soon after a cash rate change. When the cash rate holds, variable rates usually hold too, though individual lenders set their own rates and timing.
Should I fix my home loan rate or stay variable?
There is no single right answer... it depends on your cash flow, how long you plan to hold the loan, and how much certainty you want. What I would look at for your situation is the gap between fixed and variable pricing on your lender's panel, any offset or redraw you would give up by fixing, and your plans over the next few years. That is a conversation, not a formula.
How does the cash rate affect my borrowing power?
Higher rates reduce borrowing power because lenders assess your repayments at the loan rate plus a serviceability buffer (currently around 3%). When rates hold, that pressure stops building. The lever you control is how your income, debts and structure are presented... which is what the Borrowing Power Framework walks through.