Español · English

Australia raises interest rate to 4.85% as inflation persists

November 3, 2026, Australian date. The Reserve Bank of Australia raised its benchmark cash rate by 25 basis points, from 4.60% to 4.85%, after its monetary policy meeting.

The bank said inflation remains too high and is expected to take longer to ease. Its monetary policy statement projects a return to the midpoint of the 2%–3% target range around mid-2028, alongside slower economic growth and higher unemployment.

Why it matters

Higher rates raise borrowing costs for households and businesses as the bank seeks to reduce inflation. The decision also matters for the Australian dollar and debt markets.

Rockstar Briefing analysis

Policymakers face a difficult balance: prices remain under pressure while spending slows and unemployment rises. The future path depends on incoming data; this decision does not guarantee another increase.

Featured image: AI-generated illustration.

Sources: Reserve Bank of Australia monetary policy statement and decision announcement.