Olivia ThompsonRBA Deputy Governor Andrew Hauser pulled no punches on the ABC's 7.30 program on 8 September 2026, telling viewers that Australians are "furious" about inflation — and signalling the central bank is prepared to lift interest rates again if price pressures refuse to ease. With the next RBA board meeting scheduled for 29 September 2026 and trimmed mean inflation still running at 3.6%, his comments are more than an acknowledgement of public frustration: they are a direct warning to households and investors about what may come next.
What Hauser Said — and Why It Changes the Calculation
Hauser's remarks came just hours after RBA Assistant Governor Sarah Hunter made her own pointed observation that the central bank "may well have to raise interest rates" if inflation proves stronger than forecast. The back-to-back statements from two senior RBA officials in a single day were no coincidence.
Annual inflation eased to 3.5% in July 2026, down from 3.8% in June, according to the Australian Bureau of Statistics. That looks like progress — but the RBA's preferred measure, trimmed mean inflation, remained sticky at 3.6%, well above the 2–3% target band the central bank is mandated to maintain. According to the Reserve Bank of Australia's Statement on Monetary Policy, underlying inflation is expected to return to the target band only by late 2027 at the earliest under the current trajectory.
Hauser also addressed house prices directly. He noted they remain roughly 3% higher than a year ago and nearly 50% above where they stood at the beginning of the decade. "Falling house prices aren't a key factor in the bank's forecasts," he said — a clear signal that the RBA will not be swayed by a modest property correction when deciding whether to lift rates further.
The cash rate currently sits at 4.35%, after three hikes in 2026. NAB is forecasting a 25-basis-point increase at the 29 September board meeting, which would take the rate to 4.60%. ANZ, Commonwealth Bank, and Westpac all forecast the same move in November. All four of Australia's major banks agree: rates are going higher. The debate is only about timing.
What a Financial Expert Would Tell You Right Now
For many Australians, Hauser's statement will feel like more bad news piling onto an already difficult cost-of-living environment. But a wealth management professional looking at this moment would frame it differently — as a window of opportunity to act before the next hike lands.
The immediate concern is the mortgage belt. Australia has one of the highest household debt-to-income ratios in the developed world, and a significant share of variable-rate borrowers have already absorbed the 2026 rate increases without refinancing or restructuring their loan. Each 25-basis-point hike on a $600,000 variable-rate mortgage adds approximately $90 to $95 in monthly repayments — a figure that compounds across multiple hikes.
But inflation doesn't only hurt borrowers. For savers, the persistent gap between the cash rate and actual savings account returns is a separate problem. While many term deposits are now offering rates around 4.5% to 5.0% for 12-month terms, many Australians are still holding significant cash in low-yield transaction accounts, effectively losing purchasing power in real terms every month that inflation exceeds their return.
A financial planner's advice at this juncture typically involves three distinct assessments: first, debt structure (fixed versus variable, and whether a partial fix now makes sense before the September meeting); second, savings strategy (whether current cash holdings are earning an adequate real return); and third, portfolio exposure (whether investment assets are positioned for an environment where rates stay higher for longer than many assumed six months ago).
This is the kind of multi-variable analysis that changes based on individual circumstances — age, income stability, existing assets, and timeline all affect the answer. That is precisely why Hauser's comments have renewed demand for personalised financial advice rather than one-size-fits-all guidance.
When the Numbers Hit Home: A Concrete Case
Consider a typical dual-income household in Western Sydney — let's call them the Nguyens. They purchased their home in 2021 and currently hold a $650,000 variable-rate mortgage at a rate of 6.84% (reflecting the lender's margin above the 4.35% cash rate). Their monthly repayment is approximately $4,310.
If NAB's forecast proves correct and the RBA lifts the cash rate by 25 basis points on 29 September 2026, their lender passes the increase on in full. Their rate rises to 7.09%. Monthly repayment: approximately $4,409 — an increase of $99 per month, or $1,188 per year.
Now factor in that the Nguyens also bought a second-hand car on a variable-rate personal loan in early 2025, and that their energy bills have risen 12% in the past year while their grocery spend is up roughly 8% on 2024 levels. Inflation is not a single line item — it accumulates across every category of household expenditure simultaneously.
Here is the if/then pivot that a financial adviser would lay out:
If the RBA lifts the cash rate to 4.60% at the September meeting AND the Nguyens take no action on their mortgage structure, their annual interest cost increases by approximately $1,188 above where it stood in August.
If they use the pre-meeting window (before 29 September) to fix a portion — say 50% — of their loan at a current 3-year fixed rate of approximately 6.45%, the blended rate on their $650,000 loan becomes approximately 6.76% rather than 7.09%. That difference amounts to roughly $2,145 in annual savings compared to holding the entire loan at variable.
If they also consolidate $40,000 in savings currently sitting in a transaction account earning 1.2% into a 12-month term deposit at 4.80%, they recover an additional $1,440 in annual interest versus leaving the money idle.
The combined adjustment — partial loan fix plus term deposit consolidation — can improve the Nguyen household's annual cash position by over $3,500 relative to doing nothing. That is not a small number for a family already managing higher grocery and energy bills. But it requires acting before rates move, not after.
The Broader Picture: Higher for Longer Is the New Default
One of the subtler messages in Hauser's comments was about expectation-setting. He did not say inflation was under control. He did not give a timeline for when rates might fall. What he said, in effect, was that the RBA has not finished its job and that further tightening remains on the table.
This matters for wealth management planning because many Australians made financial decisions in 2023 and early 2024 based on the assumption that rates would begin falling by mid-2025. That assumption proved incorrect. Rate expectations are now being revised again — and each revision forces a rethink of fixed versus variable allocations, superannuation investment options, and property purchase timelines.
For investors in Australian equities, persistent rate pressure adds complexity. Rate-sensitive sectors — real estate investment trusts, utilities, and infrastructure stocks — typically underperform when rates rise. Growth stocks face higher discount rates. Cash and term deposits become comparatively more attractive on a risk-adjusted basis. A financial adviser can model how these shifts affect a specific portfolio's risk profile and expected returns under different rate scenarios.
For first home buyers watching from the sidelines, Hauser's message carries its own implication: if rates go higher before coming down, borrowing capacity may compress further in the near term, even as property prices remain historically elevated. The window to lock in current pre-approval terms may be narrower than it appears.
What to Do Before 29 September
The RBA's next decision falls on 29 September 2026 — just weeks away. That creates a defined deadline for action. Financial advisers are reporting higher inquiry volumes from clients wanting to review their loan structures, savings allocations, and investment positioning ahead of the decision.
The most time-sensitive steps for most households are:
Reviewing the current home loan rate against the best available refinance or partial-fix options, and requesting a comparison rate analysis from a broker or lender before the next board meeting.
Checking whether savings held in transaction or everyday accounts could be shifted to a higher-yield term deposit or online savings account without compromising liquidity needs.
For those with self-managed superannuation funds, reviewing the asset allocation mix — particularly exposure to rate-sensitive assets — in light of the higher-for-longer rate environment.
The appropriate course of action depends heavily on individual circumstances. A wealth management professional can model the specific numbers — loan balance, income trajectory, investment horizon, and risk tolerance — and recommend a strategy that reflects the current rate environment rather than the one that existed in 2023.
Andrew Hauser said Australians are furious about inflation. The most productive response to that frustration is not to wait passively for rates to fall — it is to build a financial structure that performs better whether rates rise again in September or hold until November.
This article contains general financial information only and does not constitute personal financial advice. Readers should seek advice from a qualified financial adviser before making decisions about their mortgage, savings, or investments.
Looking to speak with a wealth management expert about your financial position ahead of the September RBA decision? Find a financial adviser on Expert Zoom or explore our latest analysis of the 2026 rate cycle.
