RBA set to push cash rate to 18-year high as fifth rise looms
The RBA is expected to raise the cash rate to 4.85 per cent, its highest level since the 2008 financial crisis.
The Reserve Bank is widely expected to announce a 0.25 per cent rate rise today, lifting the cash rate to 4.85 per cent, the fifth increase this year and the highest level the rate has reached in about 18 years.
Futures markets suggest an 80 per cent probability of today's move. Beyond the decision itself, investors are closely watching the RBA's updated inflation forecasts to gauge whether more rises are coming early next year.
Commonwealth Bank has already downgraded its growth outlook, cutting its forecast for mid-2027 to almost one per cent. Every rise flows through to mortgage rates, increasing monthly payments for home borrowers across Australia.
- 4.85 per cent
- Expected cash rate
- Fifth
- Number of rises this year
- 2008 financial crisis
- Highest level since
- 80 per cent
- Futures market probability
Why it mattersEvery rate rise means higher monthly mortgage payments for millions of Australians with home loans and lower returns on savings accounts.
AustraliaFor Australian homeowners and savers, the cash rate directly determines mortgage and savings rates, affecting household finances immediately and broadly.
Corroborated byperthnow.com.au·smh.com.au
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