Australia's Central Bank Raises Rates to 4.85 Percent, a Fifth Hike This Year and the Highest Since 2008
The Reserve Bank of Australia raised its cash rate target by 25 basis points to 4.85 percent on November 3, effective November 4. It is the central bank's fifth increase of 2026 and takes the rate to its highest level since the 2008 global financial crisis. The Monetary Policy Board voted six to three, with three members preferring to leave the target unchanged at 4.60 percent.
In its post-meeting statement, the Board said the data had confirmed that underlying inflation remains broadly based, that capacity pressures appear a little tighter than previously estimated, and that higher fuel prices are being passed through to the prices of other goods and services; inflation is now expected to remain above 3 percent for the coming year, with a growing risk that higher inflation expectations become embedded. Updated forecasts in the Statement on Monetary Policy show inflation not returning to the top of the 2 to 3 percent target range until late 2027, around three quarters later than previously expected. Consumer prices rose 4.3 percent in the year to September, according to the Australian Bureau of Statistics.
Governor Michele Bullock said it was unclear what the next move in rates would be, and that the dissenting members placed greater weight on downside risks as the housing market weakened and unemployment rose. Australia's big four banks subsequently announced they would lift variable home loan rates by 0.25 percentage points from November 13. The Board's next meeting is on December 8.
Source: Reserve Bank of Australia
Published by GSM · USA (original Chinese edition)
Photo: 图：位于悉尼马丁广场的澳大利亚储备银行总部大楼。Danausi 摄，Wikimedia Commons，公共领域。 / Photo: The Reserve Bank of Australia headquarters at Martin Place, Sydney. Photo by Danausi, Wikimedia Commons, Public domain.
