(Gareth Hutchens’s post from the ABC NEWS AUSTRALIA on 03 November 2026.)
RBA lifts interest rates to highest
level in 18 years to try to dampen inflation: The RBA's monetary policy board
has increased interest rates for the fifth time in 2026.
The Reserve Bank has lifted
interest rates to their highest level in 18 years, while acknowledging it will
take much longer to drag inflation down than it was expecting a few months ago.
It has increased rates by 0.25 percentage points, which lifts the cash rate
target to 4.85 per cent, up from 4.60 per cent.
The cash rate has not been this
high in Australia since late 2008. It is the fifth time the bank has lifted
rates in 2026. RBA officials argue the hit to borrowers' income isn't the main
way rate rises lower inflation. But they often omit a key fact.
The RBA board's decision to lift rates was not unanimous. Six members voted to increase the cash rate target by 25 basis points to 4.85 per cent, while three members voted to leave the cash rate target unchanged at 4.60 per cent.








