RBA hikes cash rate to 4.85% in fifth increase of 2026
CIE News ·
Based on reporting by The Guardian; not yet independently confirmed.
The Reserve Bank of Australia raised its cash rate target by 25 basis points to an 18-year high of 4.85% in a 6–3 vote, warning that inflation will remain above target until late 2027.
On November 3, 2026, the Reserve Bank of Australia increased its official cash rate target by 25 basis points from 4.60% to 4.85%, reaching its highest level since 2008. The decision passed by a 6–3 majority vote of the Monetary Policy Board and marked the central bank's fifth interest rate hike in 2026.
According to an official statement by the Monetary Policy Board, the RBA revised its inflation outlook materially higher, noting that headline inflation reached 4.3% year-on-year through September. The central bank stated that inflation is not projected to return to its 2% to 3% target range until late 2027, citing persistent domestic capacity pressures, commodity costs impacted by Middle East conflicts, and rising prices for technology goods driven by AI-related investment.
The Guardian reported that RBA Governor Michele Bullock defended the decision, stating that "some pain now will prevent even worse pain down the track." While the RBA's post-meeting statement omitted explicit references to future hikes, financial markets priced in roughly a 30% probability of an additional rate increase by May.
Key facts
- Rate raised to 4.85%
- Highest level since 2008
- Fifth hike of 2026
- Board voted 6–3
Read the original at The Guardian