Australia · Central banks · Inflation & data · Source: rba.gov.au

Reserve Bank of Australia raises cash rate to 4.85% in a 6–3 vote

Published 3 Nov 2026, 04:30 CET

Editor: Hedal Kolanyi / AI-assisted

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Summary: The Reserve Bank of Australia raised its cash rate target by 0.25 percentage points to 4.85% on 3 November 2026. Six of nine board members voted for the increase and three for no change.

What happened

The RBA's Monetary Policy Board lifted the cash rate target from 4.60% to 4.85%, announced at 2:30 pm Sydney time (AEDT). The Board said inflation remains elevated and broadly based. Three members voted to keep the rate at 4.60%.

In its November Statement on Monetary Policy, the RBA reported that headline inflation was 3.9% over the year to the September quarter, with trimmed mean inflation at 3.7%. Its staff now expect inflation to reach about 4.5% by December 2026, then ease to 3.7% by June 2027 and 2.7% by December 2027. The RBA says inflation is not expected to reach the top of its 2–3% target range until late 2027, around three quarters later than it had previously forecast.

The bank attributes part of the higher outlook to fuel and commodity prices affected by the conflict in the Middle East. It also points to fast-rising prices for technology goods linked to AI-related investment. Meanwhile, housing prices in September were almost 5% below their March peak, and unemployment averaged 4.6% in the September quarter.

Background

According to Reuters, this was the fifth increase of 2026 and takes the total tightening this year to 1.25 percentage points, which more than reverses the 0.75 points of cuts made in 2025. Reuters also reported that 30 of 32 economists it surveyed had expected a rise, and that the decision statement dropped an earlier reference to raising the rate further "if needed". That reading of the statement is Reuters' and is not an RBA description.

The RBA's Monetary Policy Board sets the cash rate, and its target is inflation of 2–3%.

Why it matters for markets and crypto

Interest-rate decisions by large central banks influence borrowing costs, exchange rates and general risk appetite around the world. Australia's decision belongs to a wider group of central banks that have been tightening or discussing tightening as energy prices lift inflation. This article does not discuss any specific asset. The data relates to the wider economy, and a split vote shows that the Board itself was divided about how far to go.

Reuters reported that the Australian dollar slipped about 0.3% to US$0.6979 after the decision. That is a market price at one moment, not a trend.

What to watch next

4 November: Euro area October inflation flash estimate from Eurostat, another gauge of the global energy-price effect.
7–8 December: The RBA's next Board meeting. The decision is due at 2:30 pm AEDT on 8 December. Minutes of each meeting are published two weeks later.

Sources

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