The Reserve Bank of Australia (RBA) has today increased the cash rate by 0.25 percentage points to 4.60%.
While headline inflation eased to 3.5% in July 2026, underlying inflation remains stubborn with trimmed mean inflation held at 3.6%, above the RBA’s 2–3% target range.
Two main factors are keeping pressure on prices. Rising global energy costs are flowing through to the price of other goods and services, and the RBA has signalled the jobs market is still adding to wage and business costs — despite unemployment edging up to 4.6%.
The RBA will continue watching inflation, household spending and the labour market closely.
