The Reserve Bank raised the cash rate target by 25 basis points, to 4.85 per cent, on 3 November 2026. It is the fifth rise of 2026 and puts the cash rate at its highest level since 2008. The Board was split six to three. Clients with a fixed rate ending soon, or with little room left in the budget, are the ones to call about now. The decision doesn’t tell anyone where rates go next.
Current as at November 2026.
What did the Reserve Bank decide?
The target was 4.60 per cent after the 29 September decision, as covered in our September rate post. The Board moved it up 25 basis points to 4.85 per cent, the fifth increase this year after rises in February, March, May and September.
The decision was not unanimous. Six members voted to increase the target by 25 basis points; three voted to leave it unchanged at 4.60 per cent.
The Board gave a short reason. In its words, “the Board judged that a further tightening in financial conditions is warranted”.
Why did rates go up again?
The RBA says inflation remains elevated and is now broadly based. Higher fuel and other commodity prices linked to the conflict in the Middle East are feeding into the prices of other goods and services, and AI-related investment is driving rapid growth in prices for technology-related goods. Liaison indicates many firms are facing cost pressures and are raising prices or looking to.
On the RBA’s updated forecasts, inflation is expected to remain above 3 per cent for the coming year and is not expected to reach the top of the 2 to 3 per cent target range until late 2027, around three quarters later than previously forecast.
Will every home loan move by the same amount?
No. Lenders don’t all pass a cash rate change on in the same way or at the same time. Some move variable rates in full and some move them by less. Fixed rates don’t always move in step with the cash rate at all, because lenders price fixed loans on their own funding costs and expectations. So the effect on a client depends on their lender, their loan type and the terms of the loan, and it can differ between two clients with the same balance and the same bank. Lender policy differs, and a broker can check how a specific loan sits against the lenders’ current policies.
What the RBA said about housing and jobs
Two points in the statement matter for clients who are selling, upgrading or refinancing. The RBA says housing prices have fallen significantly and the unemployment rate has risen, and it expects the unemployment rate to rise by more than it had forecast in August.
For a client planning to sell or upgrade, a lower sale price changes the numbers on both sides of the move. For a client wanting to refinance, a lower valuation can change the loan-to-value ratio and narrow the options available. Neither is a reason to rush, but both are reasons to check the position before making a decision.
Which clients should book a review now?
Start with the clients most exposed to a change:
- Clients whose fixed rate ends in the coming months. Refinances often take two to three weeks, sometimes longer, so a review now leaves time to choose.
- Clients on variable rates whose budget has little room after repayments. A small rise matters most here.
- Clients who have been thinking about a refinance or a purchase and haven’t checked their position recently.
- SMSF trustees with a limited recourse borrowing arrangement. SMSF loans are usually priced higher than standard home loans, and repayments come out of the fund’s rental income and contributions, so it is worth checking the fund still meets them comfortably after five rises in a year.
Where the options usually start
You don’t need to give the advice, but it helps to know where the conversation tends to go. Three common starting points:
- A rate review with the current lender. Existing customers are not always on the same rate as new ones.
- Making better use of an offset account. Savings held in an offset reduce the interest charged on the loan.
- A change in loan structure. Adjusting the loan term or the repayment type can lower the monthly repayment, though it can increase the total interest paid over the life of the loan.
What matters when a client compares a refinance
The headline rate is only part of it. Fees, the comparison rate, whether an offset is included, break costs on a fixed loan and the client’s current loan-to-value ratio all affect whether switching is worth doing. Whether a switch makes sense depends on the loan and the client’s goals, which is what a review is for.
What happens when you refer a client?
Our process starts with an initial consultation, then strategy and research, before any application goes to a lender. The lender pays the broker commission, and for most residential lending there is no direct fee to the customer. Partners can read the referral partner FAQs for how referrals work.
If a client mentions rising repayments, a fixed rate ending soon, or a sale or purchase put on hold, refer them to us and we’ll work through the options with them.
Frequently asked questions: the November 2026 rate decision
What did the RBA decide in November 2026?
On 3 November 2026 the Board raised the cash rate target by 25 basis points, from 4.60 per cent to 4.85 per cent. The change took effect the following day. It was the fifth rise of 2026, and the vote was six to three.
Does a cash rate rise change a home loan rate straight away?
Not always. It depends on the lender, the loan type and the loan’s terms. The loan documents or the lender will say how a change is applied.
Is the cash rate the same as the rate on a home loan?
No. Each lender sets its own home loan rates, and they don’t have to match the cash rate target.
Should a client wait and see what happens next?
A review gives a clearer picture before the next decision and doesn’t commit the client to switch. Whether a switch makes sense depends on the loan, the cost of leaving it and the client’s goals.
Refer a client to Loan Lounge. The FAQ list covers how our process runs.
This is general information only. It doesn’t take your objectives, financial situation or needs into account and isn’t financial, tax or legal advice. Nothing here is a prediction of interest rates. Loan Lounge, ACL 515608.
Sources
- Reserve Bank of Australia, Statement by the Monetary Policy Board: Monetary Policy Decision, 3 November 2026.
- Reserve Bank of Australia, Cash rate, interest rate decisions table (2026 rises and the last time the target was at or above 4.85 per cent).
- Loan Lounge, company information (cash rate, process and referral details).