RBA Cash Rate Hike to 4.6%: Highest Level Since 2011 2026

The Reserve Bank of Australia (RBA) is expected to hike the cash rate to 4.6% on Tuesday, marking the highest level since 2011. This move would be the fourth increase in 2026 and push typical home loan interest rates to 6.5%.

Impact on Mortgage Repayments

For someone with an average-sized new mortgage of $731,000, now paying a rate of 6.2%, an increase would add about $119 to their $4,477 monthly repayments. That would take the total rise in repayments since January to nearly $480.

House Prices and Borrowing Capacity

House prices would fall further after a fourth rate rise. Comparison website Canstar estimated a hike would cut $11,200 from the borrowing capacity of someone earning an average annual full-time wage of $108,650, taking the total lost borrowing power to $47,400.

Household Budgets Under Strain

Household budgets have also been strained by rising petrol prices amid the US war on Iran, now 80c higher since the start of the year, adding $44 to the cost of filling up a vehicle with a 55-litre tank. Consumer spending is already slowing, with Commonwealth Bank data showing households cut back on purchases of education, motor vehicles and household goods in August.

Comparison of Key Metrics

Key Takeaways

• The RBA is expected to hike the cash rate to 4.6%, the highest since 2011.
• Mortgage repayments could increase by $119 per month for an average new mortgage.
• House prices may fall further, and borrowing capacity could shrink by $11,200.
• Rising petrol prices and slowing consumer spending add to household financial pressure.

FAQ

Best Products We’ve Tested and Rated

Our testing team has hands-on reviews of walking shoes supination, sumo deadlift shoes, work boots plantar fasciitis, cushioned running shoes, and womens running shoes it band syndrome. Every option below was compared across price, build quality, and real-world performance, with honest pros and cons. We update these guides regularly as new models arrive, so the recommendations stay current.

Our testing team has hands-on reviews of trampoline ski training, leg press hack squat combo, 4d massage chair, stall bars, and speed bag platform home. Every option below was compared across price, build quality, and real-world performance, with honest pros and cons. We update these guides regularly as new models arrive, so the recommendations stay current.