Economic News

This article sets out a worked illustration of what a 1.25 percentage point increase can mean on a large home loan. The numbers below are hypothetical. They are not RBA figures and they do not describe any particular lender's product. Lenders set their own …

The Monetary Policy Board lifted the cash rate target to 4.85 per cent, effective 4 November 2026. This followed rises that took effect on 4 February, 18 March, 6 May and 30 September. Taken together, the cash rate is 125 basis points higher than …

Dwelling investment is spending on building new homes and renovating existing ones. A forecast decline over two years means the RBA expects less residential construction activity, not just weaker sales of existing homes.

The economic conditions chapter gives the exact figure: national housing prices were 4.7 per cent below their peak in September 2026, and that peak was in March.

Taken literally, "well placed to respond" says the Board feels able to act in either direction as new information comes in. It does not say rates have peaked, and it does not promise further increases.

The coming releases on inflation, jobs and spending will matter more.

The SMP was released on 3 November 2026, the same day the Monetary Policy Board lifted the cash rate target to 4.85 per cent. The Board judges that financial conditions are restrictive, though it is uncertain by how much. Higher bond yields are one …