RBA Lifts Cash Rate to 4.85 Per Cent in November Decision

The Reserve Bank of Australia (RBA) monetary policy board has officially lifted the cash rate target by 0.25 percentage points, bringing it to 4.85 per cent. This decision, announced on 3 November 2026, marks the highest interest rate level seen in the country since late 2008.

The move follows a split vote among board members, with six in favour of the increase and three preferring to hold the rate steady at 4.60 per cent. This latest hike represents the fifth increase for the year as the central bank continues its efforts to dampen persistent inflation.

For homeowners, this decision translates into higher monthly mortgage repayments. Financial modelling suggests that a household with a $600,000 loan will now face an additional $456 in monthly interest costs compared to the start of 2026.

The ongoing tightening of monetary policy is expected to further impact borrowing capacity for prospective buyers. As interest rates climb, many households are finding it increasingly difficult to secure the same level of financing they could have accessed earlier in the year.

Market analysts are closely watching how this latest increase will influence consumer confidence and property demand. With the cash rate now at its highest point in nearly two decades, the pressure on household budgets remains a significant factor in the broader economic landscape.