Reserve Bank of Australia raises cash rate to 4.85% on a split vote
The board voted 6–3 for a 25-basis-point rise and now expects inflation to reach the top of its target band only in late 2027.
Source published · In the Daily Brief of 4 November 2026
Filed under Economy
The Reserve Bank of Australia raised its cash rate target by 25 basis points to 4.85% on 3 November. Six members backed the rise and three voted to hold at 4.60%. ABC News put the rate at an 18-year high.
The board revised its inflation outlook materially higher. Inflation is not expected to reach the top of the 2–3% target range until late 2027, about three quarters later than previously forecast. It cited higher fuel prices tied to the Middle East conflict and tighter capacity, and said AI-related investment is driving rapid growth in prices of technology-related goods.
The economy is slowing, housing prices have fallen significantly and unemployment has risen, the statement said. Growth among trading partners has beaten expectations, as the boost from AI-related investment outweighed the effects of the conflict.