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Reserve Bank of Australia Raises Cash Rate to 4.85 Per Cent in Fifth Hike This Year
As a renter, Laura Mayer is worried she will not be able to cope with yesterday's Reserve Bank interest rate hike.
Key points
- The cash rate was raised to 4.85 per cent, a level not seen since 2008.
- It is the fifth rate hike of 2026 as the RBA responds to an inflation crisis.
- Homeowners are facing 'extreme' pressures that are expected to extend into 2028.
Why it matters. Australian homeowners face pressures that are expected to extend into 2028 as the central bank keeps raising rates to fight inflation.
As a renter, Laura Mayer is worried she will not be able to cope with yesterday's Reserve Bank interest rate hike. "For me, the fact of the matter is that my rent has gone up 32 per cent in a one-off increase this year," she said. Ms Mayer blames rising interest rates. The Reserve Bank raised the cash rate by a quarter of a percentage point for the fifth time this year yesterday, taking the cash rate to 4.85 per cent.
Latest updates
Reserve Bank of Australia Raises Cash Rate to 4.85 Per Cent in Fifth Hike This Year
The Reserve Bank of Australia raised the cash rate by 0.25 percentage points to 4.85 per cent, its fifth increase this year. The decision directly affects mortgage borrowers, who face higher repayments. Renter Laura Mayer said her rent had risen 32 per cent in a single increase this year and that she feared she could not cope with the latest rate rise. She blamed rising interest rates and said she was worried landlords would pass on the higher borrowing costs to tenants. The story reflects growing concern among households about the cumulative effect of the tightening cycle on housing costs.
Reserve Bank Raises Cash Rate to 4.85 Per Cent on 3 November 2026
The Reserve Bank of Australia raised the official cash rate to 4.85 per cent on 3 November 2026. Australian lenders have begun announcing increases to their variable-rate home loans in response. Finder is tracking each lender's announcement in a running table. Borrowers on variable rates can expect their repayments to rise following the lender changes. The source does not detail the size of each individual lender's increase.
Reserve Bank Raises Cash Rate to 4.85 Per Cent in 6-3 Vote
The Reserve Bank of Australia raised the cash rate to 4.85 per cent on November 3, 2026, in a 6-3 majority vote. The Bank also downgraded its economic outlook in the same decision. Macquarie and Ubank have passed the increase on to customers, with Macquarie passing it to both borrowers and savers. Markets reacted with the Australian dollar falling and shares retreating from early gains. Ten-year bond yields hit two-month lows, while gold rebounded and oil prices fell below US$105 a barrel on hopes related to Iran.
Reserve Bank of Australia Raises Cash Rate to 4.85 Per Cent, Highest Since 2008
The Reserve Bank of Australia has raised the cash rate to 4.85 per cent, a level not seen since 2008. It is the fifth rate hike in 2026. The bank is responding to an inflation crisis that domestic and international factors have fuelled. Yahoo Finance Australia is running live coverage of the decision and the market reaction. Further rises or pauses will depend on upcoming inflation data.