Australia raises cash rate to 4.85% at November meeting

The Reserve Bank of Australia’s Monetary Policy Board raised the cash rate to 4.85% at its November meeting. Its November 2026 statement said inflation remained high and was not expected to return to the midpoint of the 2%–3% target range until mid-2028. That date is a projection, not an outcome already achieved.

The report described slowing spending alongside continuing price and cost pressures. This combination illustrates the challenge for households and businesses: restraining demand can help reduce inflation, while increasing sensitivity to repayments and financing costs.

Interpreting the forecast
A conditional forecast depends on assumptions about energy, demand, wages and the international environment. If those assumptions change, the path in a subsequent report can change too. Readers should not convert an expected return date into a promise or use it alone to make a long-term financial decision.

The central bank’s cash rate is also different from the interest rate offered on a particular household or business loan. Commercial pricing includes funding costs, credit risk and competition. The decision does not establish that a currency or equity sector must move in one direction. A more useful approach links official decisions to incoming evidence and actual contract terms, while recognizing that monetary policy reaches the economy gradually.