Australia interest rate rises to 4.85% in November 2026
The Reserve Bank of Australia lifted the cash rate target by 25 basis points to 4.85% on a six-to-three vote, raising the cost of financing a purchase.
The facts
- The Reserve Bank of Australia decided at its meeting on 3 November 2026 to increase the cash rate target by 25 basis points, to 4.85%.
- Six members voted for the increase; three voted to leave the target unchanged at 4.60%.
- The Board's statement says the economy is slowing, housing prices have fallen significantly and the unemployment rate has risen.
- The statement expects higher interest rates and falls in housing prices and turnover to weigh on growth in dwelling investment and household consumption.
- The Board also records uncertainties about the extent and economic effects of the downturn in the housing market.
What it means for your money
- Financing an Australian purchase just got dearer. The same deposit now services a smaller loan at 4.85%.
- Rental cover thins as the rate climbs: Glopra's Australia data shows an average unit asking price of USD 471,613 against an asking rent of USD 1,920.82 a month, and every step up in the cash rate takes a wider slice of that rent.
- For an owner already there, the fall in prices and turnover the Board describes works on both sides at once, cutting resale value and lengthening the time an exit takes.
What to watch
- The release does not print a date for the next decision.
- Three of the nine members wanted no change at all, so the vote itself settles nothing about the direction after this meeting.
- The Board names the downturn in the housing market as a source of uncertainty rather than a measured quantity; the next price and turnover readings are what test it.
Sources: Reserve Bank of Australia https://www.rba.gov.au/media-releases/2026/mr-26-30.html