Highlights

  • All nine members of the Monetary Policy Board voted unanimously to raise the cash rate to 4.60% in September 2026.
  • Unanimity in a rate decision strengthens the expectations channel by showing no internal division on the necessity of action.
  • Bullock stated that mortgage holders are clearly impacted and hurt by the rate rises, acknowledging the direct burden.
  • Hunter said the cost of using interest rates is less than it would be using other tools such as price controls or wage freezes.

When the Monetary Policy Board of the Reserve Bank of Australia raises interest rates and does so unanimously, the signal extends beyond the decision itself. The September 2026 increase to 4.60%, backed by all nine members, reinforces the credibility of the tightening cycle and the Board's stated commitment to returning inflation to target.

The Nine Who Voted

The minutes of the 29 September 2026 Board meeting list nine members present: Michele Bullock (Governor and Chair), Andrew Hauser (Deputy Governor and Deputy Chair), Marnie Baker AM, Melinda Cilento, Renee Fry-McKibbin, Carolyn Hewson AO, Bruce Preston, Iain Ross AO, and Jenny Wilkinson PSM. All nine voted to increase the cash rate target by 25 basis points to 4.60%.

Decision statements are issued by the Board as a body without an individual signatory. This collective framing reinforces that the decision reflects the group's considered judgment rather than the preference of any single member.

Why Unanimity Matters for Expectations

A unanimous decision sends a cleaner signal to financial markets and households than a split vote would. When a central bank board is divided, markets must weigh the possibility that a future meeting could tip the other way. Unanimity reduces that uncertainty and anchors expectations more firmly around the path the Board has communicated.

The Board's September decision statement said it remained focused on ensuring high inflation does not become embedded. A unanimous vote behind that statement is a stronger affirmation of resolve than a majority vote would be.

What the Board Said to Borrowers

Bullock did not downplay the impact on households at her September media conference. "Those who have mortgages, yes, this clearly impacts them and it hurts them," she said. The minutes recorded scheduled mortgage payments at about 10% of household disposable income, near the 2024 peak.

Hunter framed the trade-off in historical terms during her 60 Minutes interview. She pointed to price controls used by other countries in the 1970s and Australia's wage freeze in the early 1980s as alternatives that proved more damaging than interest rate policy. "The cost of it is less using interest rates than it would be using other tools," she said.