# Australia raises rates to 4.85% as inflation remains elevated

- URL: https://talkfuse.com/story/rba-interest-rates-bullock-says-some-pain-now-will-prevent-worse-pain-later-as-reserve-bank-hikes-rates-for-fifth-time/
- Published: 2026-11-03T06:14:08+00:00
- Updated: 2026-11-03T07:12:28+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/australia-news/2026/nov/03/rba-interest-rates-decision-cash-rate-november-reserve-bank-australia
- Topics: Business, Economy, Software, Technology

## Key points

- Australia’s cash rate rose to 4.85%, an 18-year high.
- The RBA says the increase is needed to curb persistent inflation.
- A $700,000 mortgage will cost about $532 more each month than before this year’s hikes.

## Summary

Australia’s Reserve Bank raised its cash rate by 0.25 percentage points to 4.85%, its fifth increase in 2026 and the highest level since 2008. Governor Michele Bullock said the move was needed to bring inflation down, arguing that some hardship now could prevent greater pain later; the decision will add pressure on households with mortgages.

The board was divided, with six members backing the increase and three preferring to hold rates steady. The bank’s statement did not signal an explicit likelihood of further rises, suggesting it may wait to assess the effects of this year’s increases. Inflation reached 4.3% in the year to September and is forecast to fall below 3% only by the end of 2027; economic growth is projected at 1.6% this year and 1.3% in 2027. Canstar estimates a $700,000 mortgage will cost $107 more a month after the latest rise, bringing the year’s total monthly increase to $532.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.