RBA raises cash rate to 4.85%, highest since 2008, as inflation fight drags on
Australia's central bank lifted rates by 0.25 percentage points for the fifth time this year, but acknowledged inflation will linger longer than expected.
What to know
- RBA raised the cash rate to 4.85%—the highest since late 2008—in a 6-3 board vote, marking the fifth increase in 2026.
- The central bank now expects inflation to stay elevated throughout 2027 and not return to its 3% threshold until late 2027, about three quarters behind previous forecasts.
- Unemployment is projected to rise more than expected, with the December 2028 average forecast at 5.1% versus 4.8% estimated in August, signaling economic slowdown ahead.
- The RBA warned that businesses increasingly view 3–3.5% inflation as normal and cited Middle East conflict and global oil disruptions as risks to the outlook.
“It takes between 12 and 18 months for a change in interest rates to flow completely through the economy, so we will not know what total impact this rate hike will have on economic activity until 2028.”
ABC Australia · ABC Australia ↗
Reserve Bank of Australia (RBA) Central bank setting monetary policyAndrew Hauser RBA deputy governor
How it unfolded 1 development · click the chart to see its coverage articlesposts
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RBA cites inflation expectations risk; warns on Middle East disruptions
The RBA highlighted growing risk that businesses view 3–3.5 percent inflation as the new normal and warned of heightened uncertainties including unresolved Middle East conflict and global oil supply disruptions maintaining upward pressure on energy prices.
“There is an increasing share of businesses who are thinking that maybe 3 to 3.5 per cent is the new normal [for inflation].”
— Andrew Hauser, RBA deputy governor -
first by The Conversation, 9d ago · also Sydney Morning Herald, The Guardian, Firstpost, Seeking Alpha, Anadolu Agency, The Courier Mail +2
8 more headlines
- RBA lifts interest rates for fifth time this year Sydney Morning Herald · 9d ago
- RBA interest rates live updates: Reserve Bank of Australia hikes rate to 4.85% in blow to mortgage holders The Guardian · 9d ago
- RBA raises interest rates to 18-year high in fifth hike this year, piling pressure on borrowers Firstpost · 9d ago
- RBA interest rates live updates: Reserve Bank of Australia announces cash rate hike to 4.85% after meeting today The Guardian · 9d ago
- RBA hikes benchmark rate to 18-year high of 4.85% as inflation risks persist Seeking Alpha · 8d ago
- RBA interest rates: Bullock says ‘some pain now’ will prevent worse pain later as Reserve Bank hikes rates for fifth time Guardian Business · 8d ago
- Australia hikes interest rate to 18-year high Anadolu Agency · 8d ago
- RBA hikes interest rates to 18-year high; ASX ends higher The Courier Mail · 8d ago
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7 outlets Breaking: RBA lifts interest rates to highest level in 18 years to try to dampen inflation
first by ABC Australia, 9d ago · also FT, WSJ, Real Estate, Australian Broadcasting Corporation, ABC News & Headlines – Australian Broadcasting Corporation, Independent UK
6 more headlines
- Australia raises rates to highest level since 2008 financial crisis FT · 9d ago
- Australia Central Bank Raises Interest Rates to Highest Level in 18 Years WSJ · 9d ago
- Breaking: RBA raises interest rates to 4.85%, highest in 18 Years Real Estate · 8d ago
- Breaking: RBA lifts interest rates to highest level in 18 years to try to dampen inflation - ABC News & Headlines Australian Broadcasting Corporation · 8d ago
- VIDEO: The RBA lifts interest rates to the highest level in 18 years ABC News & Headlines – Australian Broadcasting Corporation · 8d ago
- Australia increases interest rates to highest level in 18 years Independent UK · 8d ago
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RBA lifts interest rates to highest level in 18 years to try to dampen inflation
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⚡ NEWS RBA Hikes Interest Rates to 18-Year High The Reserve Bank of Australia raised the cash rate to 4.85%, an 18-year high, marking the fifth increase this year. The central bank warned that inflation will persist for another year, impacting economic stability and borrowing costs across the nation. 📰 https:// theconversation.com/rba-hikes-…
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Is your assumption is that these oligopolies care if consumers can pay for things? They (mostly) sell inelastic goods, consumers will literally have to over extend or take on debt to pay for these things if not from their free cashflow, and if unit prices increase and the result is slightly less units moved, the companies still win. Small…
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RBA extends inflation timeline; unemployment forecast worsens — The RBA board revised inflation forecasts upward, now expecting inflation to remain high throughout 2027 and not fall below 3 percent until late 2027—about three quarters later than previously forecast. Unemployment projections also deteriorated, with the December 2028 average now forecast at 5.1 percent versus 4.8 percent in August.
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RBA raises cash rate to 4.85%, highest in 18 years — The Reserve Bank's monetary policy board voted 6-3 to increase the cash rate target by 0.25 percentage points to 4.85 percent, from 4.60 percent. This is the fifth rate increase in 2026 and the highest cash rate since late 2008.
What people are saying 3 voices from 2 sites · best of 6 · verbatim
- Nov 3
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Additionally, a rate hike in Australia is worth 3 anywhere else due to the general structure of housing debt relative to other parts of the world
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You know like the last time a Republican screwed up the world. https://www. abc.net.au/news/2026-11-03/rba -lifts-interest-rates-november-2026-highest-rate-in-18-years/107340050?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web
- Nov 2
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Australia’s Reserve Bank Expected to Raise Rates to 18-Year High https://www. bloomberg.com/news/live-blog/2 026-11-03/reserve-bank-of-australia-rate-decision?utm_source=flipboard&utm_medium=activitypub Posted into Bloomberg Television @ bloomberg-television-bloomberg