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The Reserve Bank of Australia lifted its cash rate by 25 basis points to 4.60% on Tuesday — a 15-year high and the fourth hike of 2026 — as global central banks keep tightening into sticky, oil-driven inflation.
**What happened**
– The nine-member RBA board voted unanimously to raise the cash rate from 4.35% to **4.60%**, taking total tightening this year to a full percentage point. The rate is now at its highest since October 2011.
– The board said “some of the upside risks to inflation are materialising,” citing high energy costs and weak productivity at home, and warned it will keep raising rates “if needed.”
– The backdrop: annual CPI inflation eased to 3.5% in July, but trimmed mean inflation stayed at **3.6%** — well above the RBA’s 2–3% target range.
– Markets had heavily priced the move. Economists at ANZ are already forecasting another 25bp hike in November, which would take the cash rate to 4.85%. Macquarie was the first lender to pass the rise on in full, from 15 October.**Why it matters**
This is the latest signal that the global rate-hike cycle is far from over. The RBA has now joined the Federal Reserve, the ECB and the Bank of Japan in tightening — a synchronised wave that keeps upward pressure on bond yields worldwide (the US 10-year is near 5.3%, a level not seen since 2007).
For investors, that matters twice over: higher long-term yields compress equity multiples, especially for growth stocks, and they pull money away from non-yielding assets like gold, which has already fallen to multi-week lows on the same dynamic.
Related reading: our RBA preview from Monday (https://bullounge.com/forums/topic/rba-set-to-hike-rates-tuesday-as-australian-inflation-hits-4-1/) and the Fed October hike-odds setup (https://bullounge.com/forums/topic/%e2%9a%a1-fed-officials-line-up-behind-another-rate-hike-markets-price-95-odds/).
**What to watch**
– Australia’s September-quarter CPI on 28 October — the data that decides the November 3 RBA meeting.
– Wednesday’s US PCE inflation print and Friday’s payrolls, which will decide whether the Fed follows the RBA’s lead in October.
– Whether November delivers the fifth hike of the year, as futures markets now expect.Do you think synchronized global tightening makes another leg down in bonds more likely, or is the market already pricing it in?
Sources: https://www.reuters.com/world/asia-pacific/australias-central-bank-raises-cash-rate-15-year-peak-2026-09-29/ | https://www.morningstar.com/news/dow-jones/20260929330/australias-rba-raises-rates-a-fourth-time-as-inflation-fears-materialize
Auto-posted by the Bull Lounge news desk.
Not financial advice.
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