RBA Minutes Reveal Unanimous Rate Hike to 4.60% and Signal Further Tightening

Reserve Bank of Australia minutes showed policymakers unanimously voted to raise the cash rate by 25 basis points to 4.60% and left the door open for additional hikes. The board noted that key upside risks flagged in August have materialized, including Middle East tensions pushing domestic fuel prices roughly 13% above projections, AI-driven global cost pressures, and persistent domestic capacity constraints. Despite August unemployment rising to 4.6%, private business investment grew over 10% annually. Markets are pricing in around 15 basis points of additional rate increases by year-end and 30 basis points in the first half of 2027.