October 2026

Author
Affiliation

University of Melbourne

           cash rate
2026-10-21 0.8821674
[1] 0.1269431

Hi! Have a look at my forecasts prepared to answer the RBA cash rate survey by finder.com.au.

Survey answers

Based on the forecasts above, and the analysis of forecasts from individual models, I formed the following survey answers:

When you think the RBA will change the cash rate?

Nov 2026 Dec 2026 Feb 2027 Mar 2027 Apr 2027 May 2027 July 2027 Aug 2027 Sep 2027 or beyond
Increase ✓
Hold
Decrease

Why do you think this?

We seem to be up for another one! My forecasting system indicates an 88 percent probability of a RAISE in the cash rate. Most of my models say so, delivering exceptionally high chances of such an outcome. A rate hike seems in line with increasing inflation and the RBA’s communication for such an occassion. My forecasts are available at: https://forecasting-cash-rate.github.io/

Cash rate forecasts

The figure below presents the monthly cash rate series starting from January 2010, with the forecasts for another year reported as the forecast mean and the 68% forecasting intervals.

The table below makes the numerical values presented in the figure more accessible.

Monthly and quarterly cash rate forecasts
monthly lower upper
Nov 2026 4.73 4.62 4.83
Dec 2026 4.81 4.64 5.00
Jan 2027 4.86 4.62 5.11
Feb 2027 4.94 4.63 5.25
Mar 2027 4.94 4.56 5.34
Apr 2027 4.93 4.48 5.40
May 2027 4.94 4.42 5.48
Jun 2027 4.95 4.38 5.57
Jul 2027 4.94 4.30 5.61
Aug 2027 4.91 4.21 5.64
Sep 2027 4.87 4.12 5.67
Oct 2027 4.84 4.04 5.69