Rates up again: what 4.6% means for Melbourne households

The Reserve Bank has lifted rates for the fourth time this year. Here is what it costs, and why it happened.

Economy · MelbourneThe Dosage14 October 2026

On 29 September the Reserve Bank of Australia raised the cash rate by a quarter of a percentage point, to 4.6%. It was the fourth rise of 2026 and the board’s decision was unanimous, The New Daily and AAP reported.

4.6%the cash rate after the 29 September decision

4rate rises in 2026 so far

$91extra a month on a typical $600,000 loan, from this rise alone

$364extra a month on the same loan since January, says Canstar

Why the RBA did it

The board pointed to inflation that is still too high, fresh disruption to global oil supply, and higher fuel prices feeding into the cost of other goods and services. In its statement it said “some of the upside risks to inflation are materialising”.

What it costs

If banks pass the rise on in full, the average variable rate for owner-occupiers goes to about 6.49%. On a $600,000 mortgage that is roughly $91 more a month. Canstar’s Sally Tindall said the bigger story is the total: “The true pain is in the cumulative impact.” By Canstar’s count, the same borrower pays about $364 a month more than at the start of the year.

If you have a loan

Check what your lender has done with your rate and when the new repayment starts. If money is tight, call your lender early; they have hardship options, and asking does not cost anything. The free National Debt Helpline (1800 007 007) can help you work through it.

Why it matters back home

Many Sri Lankan families in Melbourne also send money to Colombo every month. When repayments rise, that money is often the first thing squeezed, and families back home feel it too.

Sources: The New Daily / AAP, 29 September 2026, including figures from Canstar. This is general information, not financial advice.