Australia's central bank raises its cash rate target to 4.85 per cent on a split vote

3 November 2026

The Reserve Bank of Australia has raised its cash rate target by 25 basis points to 4.85 per cent, up from 4.60 per cent. The decision was taken by the bank's Monetary Policy Board, where six members voted for the increase and three voted to leave the rate unchanged, so the decision was by majority. The Board said inflation is now expected to stay above 3 per cent for the coming year, and that it does not expect inflation to come back to the top of the 2 to 3 per cent target range until late 2027, about three quarters later than it had earlier forecast. The cash rate is the interest rate on unsecured overnight loans between banks in Australia, and the Reserve Bank steers it to meet its inflation target. Governor Michele Bullock addressed the media after the decision.