At a glance
- The Monetary Policy Board voted six to three to raise the cash rate target from 4.60% to 4.85%.[1]
The decision
The RBA said broad inflation pressures and a materially higher inflation forecast warranted further tightening. Three board members preferred to leave the rate unchanged.[1]
Housing and the economic outlook
The bank’s November assessment says spending has slowed, house prices have declined and unemployment has risen. It expects further economic slowing as this year’s interest-rate increases restrain spending.[2]
The RBA now expects inflation to return to the middle of its 2–3% target range in mid-2028. That is the bank’s forecast, subject to economic developments.[2]
Why it matters
The cash rate influences lender funding and mortgage pricing, but a borrower’s repayment change depends on the loan terms and the lender’s response. The decision does not establish a uniform change for every mortgage.
Sources & further reading
- Statement by the Monetary Policy Board: Monetary Policy Decision ↗Reserve Bank of Australia · 3 Nov 2026 · Accessed 3 Nov 2026
- Statement on Monetary Policy – November 2026: In Brief ↗Reserve Bank of Australia · 3 Nov 2026 · Accessed 3 Nov 2026
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