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RBA board votes 6-3 to raise rates to an 18-year high of 4.85 per cent
RBA raises official rate to 18-year high of 4.85 per cent in 6-3 board vote
Key points
- The RBA board voted 6-3 in favour of the rate hike, suggesting a split within the bank over the direction of rates.
- Trimmed mean inflation is not expected to reach the middle of the 2 to 3 per cent target until June 2028.
- Oil prices are a key driver of inflation, with Brent at $US104 a barrel against an August forecast of $US76.
Why it matters. Higher repayments on a 30-year $600,000 mortgage will hit households, and the bank warns the economy could end up a full percentage point smaller by the end of 2028 if consumers pull back faster than forecast.
The Reserve Bank of Australia raised its official interest rate to 4.85 per cent, an 18-year high, in a 6-3 board vote on Tuesday. The move adds about $100 a month to repayments on a 30-year $600,000 mortgage, despite a sharper than expected housing slowdown and worsening unemployment. The bank expects trimmed mean inflation to miss the middle of its 2 to 3 per cent target until June 2028, with headline inflation peaking at 4.5 per cent by Christmas.
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RBA board votes 6-3 to raise rates to an 18-year high of 4.85 per cent
The Reserve Bank of Australia increased the official cash rate to 4.85 per cent on Tuesday, November 3, 2026. The decision passed 6-3, a split that suggests disagreement within the bank over the direction of interest rates. The rise is the highest level since the global financial crisis. The bank pointed to the Middle East conflict and an AI investment boom as forces intensifying price growth. The increase adds roughly $1,000 a month to the repayments on an average mortgage, according to Sydney Morning Herald reporting.