In brief
On Tuesday the Reserve Bank of Australia increased its cash rate to 4.85%, the first 18‑year high since 2008. The move comes after four earlier 0.25‑percentage‑point raises in 2026 and is aimed at curbing rising inflation driven by higher fuel and commodity costs. The decision, approved by a 6‑3 board vote, follows persistent inflation figures and the board warned Middle‑East tensions could further weigh on prices.
RBA raised its key cash rate to 4.85% on Tuesday, the first 18‑year high since 2008, in a decision announced in Sydney on 3 Nov 2026. The Monetary Policy Board voted 6‑3 to lift the target by 0.25 percentage point from 4.60% to 4.85%.
The rise follows four earlier 0.25‑point increases earlier in 2026 and was prompted by inflation data released on 28 Oct, which showed annual CPI rising to 4.3% and trimmed‑mean underlying inflation moving from 3.5% to 3.6%. The RBA said it sees inflation remaining above its 2‑3% target until late 2027, with Middle‑East conflict risks and higher fuel costs pushing energy prices higher and passing on to other goods and services.
In its statement the board noted domestic capacity pressures appeared stronger than previously estimated and that the unresolved Middle‑East conflict could further weigh on growth and inflation. The decision will be reviewed at the final RBA meeting of 2026 in early December.
Other sources such as SBS’s live‑blog and News.com.au reported the same 18‑year high and the 0.25‑point jump, while ABC News had earlier predicted a lift to 4.85% before the vote, citing the board’s expectation in a pre‑meeting briefing.