(Reserve Bank of Australia)
Newy 87.8 FM – The Reserve Bank of Australia has raised the cash rate target by 25 basis points to 4.85 per cent, its fifth rise this year and the highest level since November 2008.
The decision was announced at 2.30pm AEDT today, 3 November 2026. It lifts the target from 4.60 per cent, and the new rate takes effect on 4 November.
The Monetary Policy Board's vote was split, with six members backing the increase and three voting to leave the rate unchanged.
In its statement, the Board said inflation is high and widespread, and its inflation forecast has been revised up.
It now expects inflation will not reach the top of the 2–3 per cent target band until late 2027, about three quarters later than previously forecast. The Board attributed this to higher fuel prices linked to the Middle East conflict and to capacity pressures at home.
The statement also said rate rises since the start of the year have tightened financial conditions. It noted the economy is slowing, housing prices have fallen significantly and the unemployment rate has risen.
The Board lifted rates in February, March, May and September before today's rise, and held in June and August.
Newcastle-headquartered NGM Group, which owns Newcastle Permanent and Greater Bank, has passed on every 2026 rise so far.
After the September rise to 4.60 per cent, Greater Bank increased variable loan rates from 9 October.
Newy 87.8 FM has not found a statement from either bank on today's decision.
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