> ## Content Index > Fetch the complete content index at: https://www.promptthemarket.com/llms.txt > Use this file to discover other available public pages before exploring further. # RBA raises rates for a fifth time this year as inflation stays high - URL: https://www.promptthemarket.com/rba-cash-rate-rise-4-85-november-2026/ - Published: 2026-11-03T03:53:00.000Z - Updated: 2026-11-03T03:52:59.000Z - Description: The cash rate rises to 4.85%, its highest in 18 years, on a six-three vote. The RBA now sees inflation above its target band until late 2027. - Author: Editor News - Tags: Markets, RBA, Interest rates, Economy, #author-james-dore ![James Dore](https://storage.ghost.io/c/e4/01/e4017178-c1da-4131-80aa-35f02cb5b999/content/images/2026/09/james-dore.jpg) By **James Dore** ยท 2026-10-22 TLDR The Reserve Bank has lifted the cash rate by 25 basis points to 4.85%, its fifth rise this year and the highest setting in 18 years. The board split six to three, and the RBA now expects inflation to stay above 3% for the coming year and not reach the top of its target band until late 2027. KEY TAKEAWAYS 01The RBA raised the cash rate target by 25 basis points to 4.85% on 3 November. 02Six board members voted for the rise and three voted to hold at 4.60%. 03Inflation is now not expected to reach the top of the 2-3% target band until late 2027, about three quarters later than forecast in August. 04The RBA says the economy is slowing, house prices have fallen significantly and unemployment has risen. 05Canstar calculates minimum repayments on a $600,000 loan are now $456 a month higher than in February. ## The decision The Reserve Bank of Australia has raised the cash rate target by 25 basis points to 4.85% at its Melbourne Cup day meeting. The decision was by majority: six members of the Monetary Policy Board voted for the increase and three voted to leave the rate at 4.60%.[\[1\]](https://www.rba.gov.au/media-releases/2026/mr-26-30.html?ref=promptthemarket.com) It is the fifth rise this year and takes the cash rate to its highest level in 18 years.[\[3\]](https://www.abc.net.au/news/2026-11-03/rba-interest-rates-markets-live-coverage/107338216?ref=promptthemarket.com) "Inflation remains elevated and recent data indicate that it is broadly based," the board said. It has revised its inflation outlook materially higher, partly because of fuel and commodity prices affected by the conflict in the Middle East, and it judges domestic capacity pressures to be a little tighter than it thought. AI-related investment is also driving rapid growth in prices for technology-related goods.[\[1\]](https://www.rba.gov.au/media-releases/2026/mr-26-30.html?ref=promptthemarket.com) The RBA now expects inflation to stay above 3% for the coming year and not to reach the top of its 2-3% target band until late 2027, around three quarters later than previously forecast. "The Board is conscious of the period in which inflation has been too high," it said, adding that there is "an increasing risk that higher inflation expectations will become embedded".[\[1\]](https://www.rba.gov.au/media-releases/2026/mr-26-30.html?ref=promptthemarket.com) The latest consumer price index showed prices up 4.3% in the year to September, with housing and fuel the biggest contributors, and trimmed mean inflation at 3.6%.[\[2\]](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026?ref=promptthemarket.com) ## What it means for spending The board was blunt about the economy. "The economy is slowing, housing prices have fallen significantly and the unemployment rate has risen," it said, and it expects higher rates and falling house prices to weigh on dwelling investment and household consumption, while business investment, including in data centres, grows faster in the near term.[\[1\]](https://www.rba.gov.au/media-releases/2026/mr-26-30.html?ref=promptthemarket.com) For households, Canstar calculates that a 25 basis point rise takes the cumulative increase in minimum monthly repayments on a $600,000 loan since February to $456.[\[3\]](https://www.abc.net.au/news/2026-11-03/rba-interest-rates-markets-live-coverage/107338216?ref=promptthemarket.com) That squeeze lands as retailers head into Christmas. Governor Michele Bullock is due to speak at 3.30pm AEDT. CBA had [tipped the earlier rise to 4.60%](https://www.promptthemarket.com/cba-tips-rba-cash-rate-to-hit-4-60-with-november-hike/). SOURCES & CITATIONS 1. [Statement by the Monetary Policy Board: Monetary Policy Decision, Reserve Bank of Australia](https://www.rba.gov.au/media-releases/2026/mr-26-30.html?ref=promptthemarket.com) 2. [CPI rose 4.3% in the year to September 2026, ABS](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026?ref=promptthemarket.com) 3. [Interest rates live updates, ABC News](https://www.abc.net.au/news/2026-11-03/rba-interest-rates-markets-live-coverage/107338216?ref=promptthemarket.com) FREQUENTLY ASKED QUESTIONS What is the cash rate now? 4.85%, after the RBA raised it by 25 basis points on 3 November 2026. Was the decision unanimous? No. Six board members voted for the rise and three voted to hold at 4.60%. When does the RBA expect inflation to fall? It expects inflation to stay above 3% for the coming year and reach the top of the 2-3% band in late 2027. ![James Dore](https://storage.ghost.io/c/e4/01/e4017178-c1da-4131-80aa-35f02cb5b999/content/images/2026/09/james-dore.jpg) [James Dore](https://www.promptthemarket.com/james-dore/) James Dore is founder and editor of Prompt the Market and Strategy Director at Bushnote, a Sydney strategy, SEO and AI search agency. He has a background in strategy, media and financial services, and led consumer product marketing at MONEYME. He writes on AI search, answer engines, technology policy and media economics.