RBA Prepares to Raise Cash Rate to 4.60% Amid Persistent Inflation Pressures

The Reserve Bank of Australia is widely anticipated to lift its official cash rate by 25 basis points from 4.35% to 4.60%, reaching its highest level since 2011. If approved, the move would represent the central bank's fourth rate increase of 2026 and push typical mortgage rates toward 6.5%. The hawkish trajectory has offered yield support to the Australian dollar against the U.S. dollar. Ahead of the decision, Treasurer Jim Chalmers defended the government's economic record, pointing to Middle East conflict and global supply disruptions, following reports of an improved 2025-26 federal budget deficit.