Isophoric News · Tuesday, November 3, 2026
Australia's central bank raises its cash rate to 4.85%, the highest since 2008, in a 6 to 3 vote
The Reserve Bank of Australia's Monetary Policy Board raised its cash rate target by 25 basis points to 4.85 percent on Tuesday, its statement said, with six members voting for the increase and three for holding at 4.60 percent. The board said it now forecasts inflation to stay elevated through much of 2027 and not to reach the top of its 2 to 3 percent target range until late 2027, about three quarters later than previously forecast. The rate is the highest since November 2008 and the increase was the bank's fifth this year, CNBC reported. Governor Michele Bullock said "some pain now will prevent even worse pain down the track," The Guardian reported, and Canstar estimated the rise would add $107 a month to the interest payment on a $700,000 home loan. The board's statement said fuel and other commodity prices tied to the Middle East conflict were part of the reason for the higher inflation outlook, along with domestic capacity pressures.