Australia's central bank raises interest rates to 18-year high amid inflation fight
The Reserve Bank of Australia (RBA) raised its cash rate by 0.25 percentage points to 4.85 percent on November 3, 2026, marking the fifth rate increase this year and the highest level in 18 years. If banks pass on the full increase, Australian homeowners with a $750,000 mortgage will face additional monthly repayments of $115 — bringing the total increase to $570 per month since the RBA began raising rates. The decision came as financial markets had anticipated a rate rise on Melbourne Cup Day.
✓ Verified
- ✓RBA raised cash rate by 0.25 percentage points to 4.85 percent on November 3, 2026. (Source: ABC News Australia)
- ✓This was the fifth rate increase in 2026. (Source: ABC News Australia)
- ✓4.85 percent is the highest cash rate in 18 years. (Source: ABC News Australia)
- ✓A $750,000 mortgage holder would see repayments rise by $115 per month if lenders pass on the full increase. (Source: ABC News Australia)
~ Interpretation
- ~Financial markets were betting on an interest rate rise on Melbourne Cup Day. (Source: ABC News Australia framing)
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