Reserve Bank of Australia raises its policy rate to 4.6%

The Reserve Bank of Australia raised its policy interest rate by a quarter of a point, from 4.35% to 4.6%, with effect from Wednesday 30 September 2026, according to the central-bank data we track.

A year earlier the rate was 3.6%, so it is now 1.00 points higher over twelve months. Among the 43 central banks on our rates page, that puts it 17th from the top.

The Australian dollar fell 0.5% against the US dollar over the past week, and the StocksXray model currently reads AUD/USD as neutral (score -7). See the AUD/USD call for the reasons and the risk levels.

Central banks use the policy rate to steer inflation and growth: raising it makes borrowing dearer and tends to cool demand, cutting it makes borrowing cheaper and tends to support it.

Interest rates are one of the main drivers of currencies: a higher rate usually makes holding a currency more attractive, a lower one less. The effect is often priced in before the decision. Educational context, not a forecast.