It happened. The Reserve Bank lifted the cash rate by 0.25 percentage points to 4.60 per cent at its meeting on 29 September, the fourth rise of 2026 and the highest cash rate since 2011. The move had been widely expected, with markets pricing a rise at close to 90 per cent in the lead-up. Here’s the plain-language guide to what it means for you.
How We Got Here
It’s been a sharp year for borrowers. The cash rate started 2026 at 3.60 per cent, then rose in February, March and May before the RBA paused in June and August.
The pause didn’t last. Inflation stayed above the RBA’s 2 to 3 per cent target band, with the trimmed mean measure the Bank watches most closely stuck at 3.6 per cent. Senior RBA officials spent September signalling that rates were only back at a “sensible level”, and all of the major banks brought their forecasts forward to this meeting.
What It Adds to Your Repayments
Most lenders pass on rate rises to variable-rate customers within days, so check your lender’s announcement for the exact date.
As a guide, on a $600,000 loan over 30 years, this single rise adds about $98 a month, or around $1,175 a year. Across all four rises this year, the same loan is costing roughly $385 more a month than it did in January, or about $4,600 a year. If you’re on a fixed rate, nothing changes until your fixed term ends, but it’s worth knowing what your repayments will look like when it does.
What to Watch Next
The next piece of the puzzle arrives quickly. New monthly inflation figures are due on Wednesday 30 September, and a hot result would add to pressure for another move. ANZ has been forecasting a further rise in November, which would take the cash rate to 4.85 per cent, while other banks have described their outlook beyond September as data dependent.
For the property market, higher rates mean less borrowing power and more cautious buyers, which is consistent with the soft auction results of recent weeks and continued falls in values across the major capitals.
What to Do Now
A few practical steps. Recalculate your budget using your lender’s new rate as soon as it’s announced. Ring your lender and ask for a better rate, since the gap between the sharpest and most expensive rates is often bigger than a single rise. If you’re buying, get your pre-approval reassessed at the new rate rather than assuming last month’s figure still stands. And if your budget genuinely won’t stretch, contact your lender’s hardship team early, before any payments are missed. Free financial counselling is available through the National Debt Helpline on 1800 007 007.
The Bottom Line
The RBA has lifted the cash rate to 4.60 per cent, its fourth rise this year, adding about $98 a month to a $600,000 loan. With another inflation reading due tomorrow and at least one major bank tipping a November move, plan for rates staying higher for longer. Check your new repayment, ask your lender for a sharper rate, and act early if the numbers no longer work. This is general information, not financial advice.
Epik Wire covers the property market in plain language for buyers, owners and borrowers. Subscribe to our newsletter to stay informed.
