RBA September Remarks: Inflation Remains the Focus for Mortgage Borrowers

Short answer

RBA Assistant Governor Sarah Hunter said on 8 September 2026 that inflation remained the priority and further rate increases could be needed if the inflation outlook strengthened. Her remarks at the AFR Property Summit were not a new interest-rate decision. Source: RBA transcript.

For a household budget, the useful next calculation is a comparison of possible repayments. Use the Rate Change Impact Calculator to test an entered loan rate against a different rate. The output describes that scenario, not what the RBA or a lender will do.

What was said, and what remains open

Hunter identified higher oil prices and strength in domestic inflation components as concerns. She also cautioned that one month's inflation figures can be volatile and that more information would arrive before the next meeting.

On housing, she explained that the RBA monitors property through its effects on economic activity; it does not target a particular house-price level. A softer property market therefore does not, by itself, settle the direction of interest rates. Source: RBA's 8 September discussion.

That leaves the next decision, any lender response and the timing of a change to a particular repayment unresolved. This article does not assign a probability to a rate rise.

A $600,000 mortgage example

Consider a hypothetical principal-and-interest loan with $600,000 outstanding and 25 years remaining. Start at an illustrative 6.00% annual loan rate, then hold the balance and term constant while changing only the rate:

These rates are chosen for arithmetic, not advertised products or forecasts. A change from 6.00% to 6.25% is 0.25 percentage points, also called 25 basis points.

The calculation uses 300 monthly payments and the standard amortising-loan formula: payment = balance × monthly rate ÷ [1 − (1 + monthly rate) raised to the power of minus 300]. The monthly rate is the annual percentage divided by 1,200.

It assumes each selected rate lasts for the remaining term. It excludes fees, offsets, extra repayments and changes in payment timing. Figures are rounded to cents; lender calculations and required payments may vary. For a different balance or term, use the Mortgage Repayment Calculator.

Which loan details matter

Variable loan rates can move with lending-market conditions. A fixed rate applies for an agreed period, and a split loan contains both fixed and variable portions. Check the relevant part of the loan before applying a scenario to the whole balance. Source: ASIC Moneysmart on choosing a home loan.

A useful comparison records:

• The balance used, and the date it was checked.
• The loan's interest rate, rather than substituting the RBA cash rate.
• The remaining repayment term, rather than restarting at 30 years.
• Whether the repayment is principal and interest or interest-only" class="glossary-link" data-glossary="interest-only">interest only.
• Any fees or features excluded from the estimate.

The example above is principal and interest. It should not be copied into an interest-only budget. Nor does a $92.21 scenario increase mean a lender has notified that change.

What this changes on RealEstateCalc

The remarks provide context for testing assumptions. They do not supply a new repayment formula, tax threshold or approved borrowing amount, so this article makes no such calculator change.

The home loan rate change checklist covers the account details to check if a lender sends a notice. For the relationship between balance, term and payment, read understanding mortgage repayments.

A repayment comparison answers a narrow question: what would this loan payment be under the entered assumptions? It does not assess all household expenses, future income, lending criteria or whether buying or refinancing suits an individual.

Sources and review date

• RBA: Fireside Chat at the AFR Property Summit, remarks delivered 8 September 2026, checked 10 September 2026.
• ASIC Moneysmart: Choosing a home loan, checked 10 September 2026.
• Repayment figures are independently calculated illustrative examples, not RBA or lender estimates.

General information only. These estimates are not a quote, credit approval, borrowing assessment, financial, legal or tax advice, investment recommendation or forecast. Check lender notices and consult an appropriately licensed professional for personal decisions.

Editorial image: AI-generated conceptual illustration of a model home and comparison blocks, not a photograph of the RBA event or a forecast.

Last updated: 10 September 2026.