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RBA Board Decides on Cash Rate on Melbourne Cup Day
Reserve Bank of Australia board decides on cash rate on Melbourne Cup Day, with a fifth hike widely tipped by economists.
Key points
- The RBA raised the cash rate by 25 basis points to 4.85 per cent, the highest since November 2008.
- The Consumer Price Index report was worse than expected and showed inflation remained elevated.
- ANZ expects Australians to spend $3.44 billion nationally and $824 million in Victoria during the 2026 Melbourne Cup Carnival.
Why it matters. The Real Estate Institute of Queensland warns rising rates are stalling demand for new homes, raising fears Australia could miss its housing supply targets.
The Reserve Bank of Australia hiked its key cash rate by 25 basis points to 4.85 per cent on Melbourne Cup Day, its fifth rise this year and the highest since November 2008. The move followed a worse-than-expected Consumer Price Index report showing inflation stayed elevated because of global fuel prices and the AI investment boom. Governor Michele Bullock will address the media at 3.30pm on the decision and any further rises next year.
Latest updates
RBA Board Decides on Cash Rate on Melbourne Cup Day
The Reserve Bank of Australia is meeting on Melbourne Cup Day to decide whether to raise the cash rate again. The board will announce its decision at 2.30pm Australian Eastern Daylight Time. Mortgage holders are bracing for the fifth interest rate hike of the year, according to the report. The outcome had not been announced at the time of publication. Market expectations and the rationale will be detailed in the board's statement and the governor's press conference that follow. The decision will directly affect variable-rate home loan repayments across Australia.