Sunita Somvanshi
Many Australians with mortgages have been paying more for their home loans this year. The Reserve Bank of Australia (RBA) raised the cash rate to 4.60% on 29 September 2026, its fourth rise of 2026. The next decision is due on 3 November. Here is what the rise means for your repayments.
The RBA sets the cash rate, the main interest rate that banks use to price home loans. The rate rose to 4.60% after the September decision, which the Board passed unanimously, according to the Commonwealth Bank newsroom. The RBA’s next decision is due on 3 November 2026.
Sarah Hunter, the RBA’s Assistant Governor (Economic), has pointed to inflation and demand as the central concerns. The RBA has said it may raise rates again if needed.
What “demand” means here
Demand is how much households, businesses and governments spend. When demand runs hot, prices rise faster. Economists call this the demand side of the economy.
Think of inflation like a tap left running while someone tries to mop the floor. Prices keep rising, even as the economy slows. That is why the RBA has kept lifting rates.
When will the RBA cut interest rates in Australia? The RBA has not signalled cuts. The next decision is on 3 November, and the bank has said further rises remain possible if needed. Mortgage holders should watch that decision closely.
Your repayments depend on your loan type and your lender. Check your loan terms and talk to your lender before the next decision.
For more, read our guide to fixed versus variable home loans and our explainer on how the cash rate works.
The RBA has lifted the cash rate to 4.60%. Its next decision is due on 3 November. Mortgage holders should check their loan terms and talk to their lender. Watch the decision date for updates.
