The Reserve Bank of Australia unanimously raised its cash rate target by 25 basis points to 4.60% at its 28–29 September 2026 meeting, saying several upside inflation risks identified in August had materialized or were building. The minutes cited oil prices above forecast levels after the Middle East conflict escalated, stronger global costs linked partly to artificial-intelligence demand, widespread business cost pass-throughs, inflation above expectations and greater domestic capacity pressures. The RBA said further increases remained possible if needed, keeping a fifth hike this year under consideration ahead of its November meeting if third-quarter CPI shows persistent price pressures. The Australian dollar remained below $0.70 near multi-month lows as the US dollar reached an 18-month high amid higher oil prices and expectations of further Federal Reserve tightening. The minutes describe inflation returning to the target midpoint around mid-2027, while the existing record referenced late 2027; Term Repo Operations are expected to become operational in 2027.