Major Banks Forecast November RBA Cash Rate Hike
Financial markets and major banks anticipate a 25-basis point rate rise this November, which would bring the official cash rate to 4.85%.
With annual inflation climbing to 4.3% in September, the Reserve Bank of Australia is under mounting pressure to lift interest rates for the fifth time this year. Economists from major banks, including the Commonwealth Bank, now expect a 0.25 percentage point increase when the board meets on 3 November.
If the RBA proceeds with this hike, the official cash rate will rise to 4.85%. This move is intended to curb persistent inflationary pressures, though it adds further financial strain to households already managing higher repayments.
Canstar estimates that a borrower with an average $731,000 mortgage could face an additional $114 in monthly repayments if the rate rises as predicted. This comes on top of the $464 monthly increase that borrowers have already absorbed throughout 2026.
Homeowners are advised to review their budgets ahead of the decision. The cumulative effect of four previous rate hikes this year has already reduced the borrowing capacity of a median-income household by approximately 9%, or $90,000.
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