The Reserve Bank decides on rates next Tuesday: what to watch

If you have a mortgage, savings or a business loan, next Tuesday matters. The Reserve Bank of Australia's Monetary Policy Board meets on 28 and 29 September, and its decision on the cash rate is announced at 2.30pm on Tuesday 29 September.

Where the cash rate stands

At its last meeting, on 11 August, the Board decided to leave the cash rate target unchanged at 4.35 per cent. In its statement, the Board said headline inflation was still too high and trimmed mean inflation remained elevated. It noted that financial conditions had tightened in response to earlier increases in the cash rate this year.

The latest inflation figures

The Australian Bureau of Statistics reported on 26 August that in the 12 months to July 2026:

• the Consumer Price Index rose 3.5 per cent, down from 3.8 per cent in the 12 months to June

• trimmed mean inflation, a measure of underlying inflation, was 3.6 per cent, unchanged from June

• the largest contributors were housing (up 5.0 per cent), food and non-alcoholic beverages (up 3.2 per cent), and recreation and culture (up 2.6 per cent).

What to watch on the day

• The decision: whether the Board holds, raises or lowers the cash rate target.

• The statement: the Board's explanation often says as much as the decision, especially about inflation and the outlook.

• Your lender: banks decide separately whether and when to pass on any change to variable rates.

What you can do now

Whatever the outcome, it is a good moment to check your own position: know your current interest rate, review your budget, and consider how a change of 0.25 percentage points would affect your repayments. ASIC's Moneysmart has free calculators to help.

This article is general information only and does not predict the Board's decision. It is not financial advice.