RBA raises cash rate to 4.60%, highest since 2011
The RBA raised the cash rate 25bp to 4.60% on Sept 29, its fourth hike of 2026 and the highest since 2011, against inflation of 3.5-3.6% above target. A credible independent tightening.
Coverage tagged: Australia (AUS)
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The RBA raised the cash rate 25bp to 4.60% on Sept 29, its fourth hike of 2026 and the highest since 2011, against inflation of 3.5-3.6% above target. A credible independent tightening.
The 55th Pacific Islands Forum ran Aug 30 to Sept 1 in Koror, Palau, with several heads of state absent. China objected to Taiwan's presence and warned of consequences. Corroborated by Reuters and AP. Australia's regional convening power is being contested while its alliance commitments are unchanged, which is why the score holds and the confidence rises.
Q2 GDP surprised to the upside at 0.4% quarterly and August inflation ran hotter than forecast, together putting an RBA rate rise firmly in play, with bonds selling off on the data. Growth surprising upward into an inflation overshoot is the combination that forces tightening.
The July 6 JL-3 SLBM test's flight path crossed near Tuvalu/FSM/Nauru/Kiribati EEZs; the Solomon Islands (PIF chair) formally protested and Australia and Fiji signed the Ocean of Peace Alliance defense treaty in Suva in direct response, with New Zealand weighing joining (RFA is US-funded: usable on China, flagged; corroborated by Japan Times and Islands Business). Drove Australia alliance 3 to 4; China conflict held near -4.