Economic News

The RBA's October Financial Stability Review judged that non-bank lenders do not pose a system-wide threat, pointing to one deciding factor: their relatively small size.

Assistant Governor (Economic) Sarah Hunter has pointed to a sizeable group of borrowers who are well ahead on their home loans, a reminder that higher interest rates do not land evenly across mortgaged households.

Governor Michele Bullock says the full effect of a rate change can take 12 to 18 months to come through, which means the increase that took effect on 30 September has only just started working its way into household budgets.

Asked on national television to forecast the Reserve Bank's next decision, Deputy Governor Andrew Hauser declined, pointing out that the outcome rests with nine voters rather than with any one official.

The minutes of the Reserve Bank's September meeting are due at 11.30 am AEDT on Tuesday 13 October, offering the first detailed record of a unanimous decision to lift the cash rate for the fourth time this year.

The Reserve Bank's August forecasts were built on less than one full rate increase by the end of 2026, but the Board delivered a full 25 basis points in September as energy prices climbed well beyond what those forecasts had assumed.

• Transport prices increased 5.6%, while automotive fuel jumped 14.8% in August.