The Reserve Bank of Australia's Monetary Policy Board raised the cash rate target by 25 basis points to 4.85% on 3 November 2026. The new target takes effect on 4 November. The Board was split. Six members voted for the increase and three voted to hold the rate at 4.60%.

This is the fifth increase this year. The RBA's cash rate table shows rises effective 4 February, 18 March, 6 May, 30 September and now 4 November, with holds in June and August. The target started the year at 3.60%, so it is 1.25 percentage points higher than in January. The same table shows the target has not been this high since it stood at 5.25% from 5 November 2008 until a cut that took effect on 3 December 2008.

Effective dateChangeCash rate target
10 December 2025Hold3.60%
4 February 2026+0.253.85%
18 March 2026+0.254.10%
6 May 2026+0.254.35%
17 June 2026Hold4.35%
12 August 2026Hold4.35%
30 September 2026+0.254.60%
4 November 2026+0.254.85%

The statement says recent data show inflation is broadly based and that staff have revised the inflation outlook materially higher, partly because of fuel and commodity prices tied to the conflict in the Middle East. The Board said inflation is now expected to stay above 3% for the coming year, outside the 2 to 3% target range. On property, the statement says the economy is slowing, housing prices have fallen significantly and the unemployment rate has risen. It adds that higher interest rates and falls in housing prices and turnover are expected to weigh on dwelling investment and household spending. The November Statement on Monetary Policy puts national housing prices in September at 4.7% below their March peak and says new housing lending has declined sharply, with new housing loan commitments 27% below their November 2025 peak.

For a buyer with an Australian variable-rate loan, the cash rate is the benchmark lenders reference when they reset floating mortgage rates, although each lender decides how much of a move to pass on and when. As a hypothetical example, an A$800,000 interest-only variable balance costs about A$2,000 more a year for each 25 basis points passed through in full, and about A$10,000 more a year across the 1.25 points added since January. A fixed-rate loan already drawn is not repriced by the decision. A buyer paying cash from savings held in another currency is not tied to the cash rate directly, but the purchase price is still converted into Australian dollars at settlement, so the exchange rate on that day decides the cost in the home currency.

The decision follows September-quarter inflation data covered in Australian CPI rises to 4.3% with housing the largest contributor ahead of the RBA's November meeting and the October price index covered in Australian home values fall for a seventh month as Brisbane and Perth lead Cotality's October index. The Board's next scheduled meeting is on 7 and 8 December 2026. Earlier decisions are listed on Rate decisions.

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Sources

Sources read 3 November 2026 (media release, cash-rate table and board schedules) and 4 November 2026 (Statement on Monetary Policy chapters).