The RBA lifted the cash rate to 4.85 per cent. It was not unanimous.

The Reserve Bank lifted the cash rate target by 25 basis points to 4.85 per cent on Monday 3 November 2026, effective 4 November. It is the fifth increase of 2026, after February, March, May and September, and takes the rise this year to 1.25 percentage points. The cash rate is now at its highest level since late 2008, according to the ABC's reporting on the decision.

The vote was six members for the hike and three to leave the cash rate at 4.60 per cent. That matters because the September increase was unanimous and some headlines still describe every 2026 move as agreed by the whole board. It was not unanimous in November.

What the board said and how inflation forecasts changed

The statement opens with inflation still elevated and recent data showing it remains broadly based. Staff have revised the inflation outlook materially higher. Domestic capacity pressures are judged a little tighter than earlier thought, fuel and other commodity prices affected by the Middle East conflict are adding pressure, and inflation in many goods and services remains high.

Inflation is now forecast to remain elevated through much of 2027 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. The board warned that presents upside risks to inflation expectations, and that some measures are assessed to have risen lately. It judged a further tightening in financial conditions warranted to support the return of inflation to target, and said it will continue to do what it considers necessary, with decisions guided by data and the evolving outlook.

The same release notes the economy is slowing, housing prices have fallen significantly, and the unemployment rate has risen. Growth is expected to slow further, which should ease capacity pressures over time. Employment is still expected to grow, but unemployment is projected to rise by more than in the August forecasts. Governor Michele Bullock said at the press conference that the board is not looking to tip the economy into recession if it can avoid it, but needs to get inflation down while excess demand remains.

What it costs borrowers, and when repayments rise

Commonwealth Bank, NAB, Westpac, ANZ and ING each announced they will pass on the full 0.25 percentage point rise to variable home loans from Friday 13 November 2026, according to Savings.com.au and Australian Broker. Teachers Mutual Bank will move from 12 November, Bank of Sydney from 17 November, and Macquarie from 19 November. Canstar's 4 November figures put Westpac's advertised owner-occupier variable rate from 6.49 per cent once the change takes effect and NAB from 6.54 per cent.

Your interest rate usually changes on the lender's effective date, but your minimum repayment often starts later, after notice. CBA gives at least 20 days and the other majors at least 30. Australian Broker quotes ANZ's estimate of about $79 a month extra on a $500,000 owner-occupier loan from this hike alone. On a 30-year principal and interest loan, another 0.25 percentage point on a $600,000 balance is often in the order of $95 to $100 a month. Run your own balance on the calculator linked below rather than assuming a generic figure.

The full list of lenders and start dates is in our companion pass-through piece. The next board decision is 8 December 2026.

Savers: the rise is not automatic on every account

A higher cash rate does not mean every savings customer sees the full 0.25 percentage point increase on every product. Australian Broker reported on 4 November 2026 that ANZ Plus Growth Saver would reach 5.6 per cent and Westpac Life 5.5 per cent for customers who meet bonus conditions, that ING is lifting savings rates alongside its home loans, and that CBA and NAB had not announced deposit changes as of that date. Canstar's 4 November coverage also reported Westpac adjusting selected savings rates from 13 November.

If your mortgage rate rises in full but your bonus saver still pays a low base rate because you missed a monthly condition, the net position can worsen. Check which account actually holds your buffer, and whether it earns the advertised bonus or the base rate.

What to do now

1. Read your lender's notice when it arrives and note the date your repayment increases. If the higher rate has already started but your repayment has not, you can lift the payment yourself.
2. Model your budget at 4.85 per cent and at another 0.25 point above that, because the statement left further tightening on the table.
3. Compare your variable rate and comparison rate with the market. Canstar expects the average owner-occupier variable rate to settle around 6.74 per cent after this pass-through.
4. Check your savings and offset rate separately from your home loan. A full mortgage pass-through with a partial savings move is common.
5. If you are buying or refinancing, ask for serviceability to be rechecked at the new assessment rate before you bid or lodge an application.

Disclosure: Licensed brokers who meet our criteria pay Your Finance Guide a partnership fee to receive enquiries from this site. The fee is paid by the broker, not by you, and is not added to your loan. Brokers are usually also paid a commission by the lender when a loan settles. Figures are as published by the named sources up to 5 November 2026. Repayment examples are illustrative, not quotes. This is general information, not personal advice.