RBA lifted the cash rate to 4.85% in November

This article explains a release dated 3 November 2026. Figures and conditions relate to that release and may have changed since.

The Reserve Bank announced a 0.25 percentage point increase in its cash rate target to 4.85% on 3 November 2026. The new target took effect on 4 November, as recorded in the RBA’s key statistics. In the November policy statement, six Board members supported the increase and three preferred to hold the target at 4.60%.

The RBA said its inflation outlook had been revised materially higher. It now expected inflation to remain elevated through much of 2027 and reach the top of the 2–3% target range only in late 2027, around three quarters later than previously forecast.

At the same time, the Bank acknowledged slower economic activity, falling housing prices and a higher unemployment rate. Its decision reflected the judgement that further tightening was needed despite those signs of weakness. The statement described substantial uncertainty, rather than presenting its forecasts as guaranteed outcomes.

For borrowers assessing the announcement, the distinction between a policy rate and a mortgage rate remains important. A lender’s communication supplies the product-specific change and its timing. The Board’s announcement does not establish a universal repayment increase for every mortgage holder.

ASIC Moneysmart’s refinancing guidance recommends checking both switching costs and the remaining loan term when comparing alternatives. A new loan with a lower regular repayment may also run for longer, so the payment alone is not a complete comparison. This is general context, rather than a recommendation to switch.

Our reading is that the November decision calls for a current set of numbers before drawing household conclusions. An old quote, an earlier policy headline and a current repayment notice may describe different dates. Putting the relevant documents side by side can reveal which assumptions need updating.

A useful comparison keeps the balance, term, fees and features visible, so a change in one item is not mistaken for an improvement in everything. The right conclusion still depends on the household and the actual offer. This article records the policy development available at publication and does not predict the next Board decision.

General information, not personal financial advice. Consider your circumstances and check current lender or program conditions before making a decision.