The Reserve Bank of Australia (RBA) has raised the official cash rate to 4.6 per cent, the highest level since 2011, with Governor Michelle Bullock stating that higher interest rates are necessary to return inflation to the target range.
Bullock noted that the RBA had raised rates three times earlier in the year and warned that the board would raise rates further "if necessary to bring inflation down". The bank did not rule out further increases before the end of the year.
The Treasurer, Jim Chalmers, said the move by the RBA would "make things harder" for many Australians. He stated that Australians were "under pressure", highlighting the conflict in the Middle East as a key driver of rising inflation, and noting that the challenge in the economy had been worsened by the war in the Middle East.
Angus Taylor assessed that the rise in interest rates would worsen the "difficult times" for millions of Australians. According to him, households with mortgages would pay $1,400 more per year due to additional costs, and he accused the government of inflating inflation through excessive government spending.
Less than an hour after the RBA's decision, Macquarie Bank announced its own interest rate changes. The bank will increase the reference rates for variable home loans by 0.25 per cent per annum, effective from 15 October 2026. On the same date, it will also increase the variable interest rates on transaction and savings accounts.
In a separate development, New South Wales police are investigating the suspicious deaths of two men in the state's north. The first man, identified as a 79-year-old, was found dead by police on a property on Summerland Way in Gurranang on 13 September.
