Economic News

It was not a unanimous call. Six members of the Board voted to increase the rate, while three voted to leave it unchanged at 4.60 per cent. The Board's statement does not set out the reasons for the minority view.

The result is a cumulative increase of 125 basis points, taking the target to 4.85 per cent from 4 November 2026. The final meeting of the year is scheduled for 8 December.

The Statement by theMonetary PolicyBoard records that the decision was made by majority. Six members voted to increase the cash rate target. Three voted to leave it unchanged at 4.60 per cent. The new setting took effect on 4 November.

The statement then spent several paragraphs explaining the majority's thinking. It gave no reasons for the minority view.

Between February and August 2025, the RBA cut the cash rate target three times, from 4.35 per cent to 3.60 per cent. Between February and November 2026, theMonetary PolicyBoard raised it five times, to 4.85 per cent. The latest rise, announced on 3 November …

Higher energy prices linked to the Middle East conflict have added to inflation pressures.

The majority's view followed directly: "a further tightening in financial conditions is warranted to support the return of inflation to target."