RBA raises cash rate to 4.85 per cent, highest since November 2008
The RBA hiked the cash rate to 4.85 per cent, the highest level in almost 18 years, fighting inflation above target.
The RBA raised rates by 25 basis points on Tuesday, the fifth increase this year, to combat inflation that remains above the 2-3 per cent target. The decision was not unanimous; three board members voted to hold rates steady.
The RBA cited elevated inflation and tighter domestic capacity pressures, partly driven by higher fuel and commodity prices linked to Middle East conflict. Macquarie Bank announced it will lift variable home loan rates from 19 November.
An average homeowner is now paying about $6,450 more annually than a year ago. Economists warn rate relief is unlikely before late 2027, with the RBA focused on bringing inflation back to target.
- 4.85 percent
- Cash rate
- November 2008
- Highest level since
- 5
- Increases in 2026
- 6,450 dollars
- Annual cost increase for homeowners
Why it mattersEvery percentage point rise increases what homeowners pay each month, squeezing household budgets already under strain.
AustraliaAustralian mortgage holders face higher repayments; home prices have already fallen 4.3 per cent from peak as affordability worsens.
✓ Claims checked against the source. checked 1 d ago
