businessBREAKING
RBA lifts cash rate to 4.85 per cent in fifth rate rise of 2026
RBA lifts cash rate to 4.85 per cent in fifth rate rise of 2026, its highest level in 18 years.
Key points
- The cash rate target rises 25 basis points to 4.85 per cent from 4.60 per cent.
- Interest rates reach their highest level in 18 years.
- A 25-year, $600,000 loan at 6.50 per cent would cost an extra $94 each month.
Why it matters. Mortgage holders may face higher repayments, since commercial banks decide for themselves how the RBA decision is passed on to their rates.
The Reserve Bank of Australia has confirmed a 25 basis points increase, taking its cash rate target to 4.85 per cent from 4.60 per cent. The move takes interest rates to their highest level in 18 years. On a 25-year loan of $600,000 at 6.50 per cent, a mortgage would cost an extra $94 each month, though commercial banks decide how the decision flows through to their own mortgage rates.
Latest updates
RBA lifts cash rate to 4.85 per cent in fifth rate rise of 2026
The Reserve Bank of Australia has confirmed its fifth interest rate increase of 2026. The cash rate target rose by 25 basis points, from 4.60 to 4.85 per cent. The higher benchmark rate feeds through to variable mortgage rates, meaning repayments will rise for many borrowers. Publications have published calculators to help households estimate how much extra they will pay. The decision is part of the central bank's efforts to manage inflation.