RBA Interest Rate Update November 2026: Cash Rate Rises to 4.85%
Quick answer: On Tuesday 3 November 2026, the Reserve Bank of Australia (RBA) raised the official cash rate by 25 basis points (0.25%) to 4.85%, up from 4.60%. It is the fifth rate rise of 2026 and takes the cash rate to its highest level since 2008. Unlike the last two decisions, the Board was split: six members voted to raise rates and three voted to hold. Most lenders are expected to pass the increase on to variable home loan rates, so now is a good time to review your loan.
RBA cash rate decision: why rates went up again
The RBA says inflation is still too high and is now spread across many parts of the economy. Its staff forecasts for inflation have also been revised up materially. Higher fuel prices linked to the Middle East conflict are flowing through to the prices of other goods and services. Investment in AI is pushing up the cost of technology goods. Many businesses also say they are raising their prices, or plan to, because their own costs keep rising.
The RBA now expects inflation to stay above 3% for the coming year. It doesn’t expect inflation to reach the top of its 2–3% target range until late 2027, about three quarters later than it forecast in August. The Board is also concerned that people may come to expect high inflation, which can make it harder to bring down.
A split decision: what the 6–3 vote tells us
The August hold and the September rise were both unanimous. This time, three of the nine Board members wanted to keep rates at 4.60%. The statement also no longer says the Board will raise rates further “if needed.” It now says it will do what is necessary and watch the data closely.
That doesn’t mean rates have peaked. But it does suggest the Board is weighing two risks: inflation staying high, and an economy that is already slowing.
Highest rate since 2008: what it means for you
At 4.85%, the cash rate is now at its highest level since 2008. For many households, it is the highest cash rate they have faced since taking out their mortgage. The RBA itself notes that the economy is slowing, unemployment has risen, and household spending is expected to stay under pressure.
Savers are the exception. If your bank passes the rise on to your high-interest savings account, you’ll earn a little more interest.
Falling house prices: what upgraders should know
The RBA says housing prices have fallen significantly and fewer homes are being bought and sold. If you’re planning to upgrade, this changes the numbers on both sides. Your current home may sell for less than you hoped, but the next one may cost less too. Getting the timing right between selling and buying, and knowing your borrowing power at today’s rates, matters more than ever.
How to reduce monthly mortgage repayments
You can’t control the cash rate, but you can control how your loan is set up. Here are three places to start:
- Ask your lender to review your rate. Many existing customers pay more than new customers do.
- Use your offset account well. Every dollar sitting in an offset account reduces the interest you’re charged.
- Look at your loan structure. Changing your loan term or repayment type can lower your monthly repayments. Be aware that this can increase the total interest you pay over the life of the loan.
Compare home loan refinance rates
Before the rate rise shows up in your repayments, compare what other lenders are offering. Look beyond the headline rate. Check the comparison rate, fees, offset features, and any break costs if you’re on a fixed rate. Falling property values can also affect how much you can refinance, so it’s worth checking where your loan-to-value ratio now sits.
Variable rate vs fixed rate home loans
A variable rate usually moves when the cash rate moves, so today’s rise will feed through to your repayments. It also means you benefit when rates eventually fall, and variable loans are more flexible.
A fixed rate gives you certain repayments for a set period. Lenders have often already built expected rate moves into their fixed rates, and you may pay break costs if your plans change.
A split loan, part fixed and part variable, gives you some of both. The right choice depends on your cash flow, your plans and how much certainty you need.
SMSF property lending options
SMSF loans are generally priced higher than standard home loans, and repayments come out of your fund’s cash flow: rental income plus contributions. After five rate rises this year, check that your fund can still comfortably meet its repayments. If you’re planning to buy through your SMSF, also compare lenders, as policies and pricing vary widely.
Searching “best mortgage broker Sydney” or “mortgage broker near me”?
If today’s decision has you looking for help, choose a broker who looks at your whole situation, not just the lowest rate on offer. Loan Lounge is based in Sydney’s Inner West. We help homeowners, upgraders, self-employed borrowers and SMSF purchasers in and around Burwood build a clear, well-structured plan for their loans.
Book your LOAN REVIEW with Loan Lounge → Click here to book with Nathaniel. Alternatively, if you are an existing client, and you already have a Loan Lounge broker, kindly email your broker to book.
FAQs
Did the RBA raise interest rates in November 2026?
Yes. On 3 November 2026, the RBA raised the cash rate by 0.25% to 4.85%. The Board voted six to three in favour.
How much will my repayments go up?
It depends on your loan and lender. As a rough guide, if the full 0.25% is passed on, repayments on a $600,000, 30-year variable loan would rise by about $100 a month.
Will interest rates go up again?
The RBA hasn’t ruled it out. It says it will watch the data closely and do what is necessary to bring inflation back to target. Three Board members voted to hold this time.
When will inflation come down?
The RBA expects inflation to stay above 3% over the coming year and to reach the top of its 2–3% target range in late 2027.
General information only. This article does not consider your personal circumstances and isn’t personal financial advice. Speak with a licensed mortgage broker before making decisions about your home loan.