Quick answer: on Tuesday 3 November 2026 the Reserve Bank raised the cash rate by 0.25%, from 4.60% to 4.85%. The Board was split: six members voted to raise and three to hold. If your lender passes it on in full, a variable loan costs about $82 a month more for every $500,000 owed. It is the fifth rise of 2026. The next decision is on 8 December.
Markets had priced in a rise after September’s inflation figures, so this wasn’t a surprise. What is new is the RBA’s outlook: it now expects inflation to stay high for longer, which makes a quick turn to rate cuts less likely. Here is why it moved, what it costs you and what to do now.
Why the RBA raised rates again
In its statement and its updated forecasts (the November Statement on Monetary Policy), the RBA gave four reasons:
- Inflation is high and broad. Headline inflation was 3.9% over the year to the September quarter and underlying (trimmed mean) inflation 3.7%. Price rises are spreading across many goods and services, not just fuel.
- Fuel costs are flowing through. The Middle East conflict has pushed up fuel and other commodity prices, and businesses are passing those costs on.
- The economy is a little tighter than thought. Despite slower growth and rising unemployment, cost pressures have stayed strong, so the RBA thinks there was less spare capacity than it estimated.
- Inflation expectations. The RBA sees a growing risk that people and businesses come to expect high inflation, which would make it harder to bring down.
Put simply, the Board judged that “a further tightening in financial conditions is warranted” to get inflation back to its 2–3% target.
What the RBA’s new forecasts say
| Measure | Forecast | Compared with August |
|---|---|---|
| Headline inflation | 4.5% by December 2026, above 3% until late 2027, 2.5% by mid-2028 | Higher: August expected 3.6% by December 2026 |
| Underlying inflation | 3.6% by December 2026, 2.9% by December 2027 | Higher and slower to fall |
| Unemployment | 4.7% by December 2026, a bit over 5% by the end of 2028 | Around 0.25% higher |
| Economic growth | 1.6% over the year to December 2026 | Slightly stronger now, weaker later |
| Cash rate assumed | About 4.7% on average in 2026, then 4.8% to 4.9% through 2027 | Higher than in August |
Source: RBA, Statement on Monetary Policy, November 2026. Forecasts were finalised on 28 October. The cash rate path is a technical assumption based on market pricing, not an RBA promise.
The RBA also noted that housing prices in September were almost 5% below their March peak and that new housing lending has fallen sharply. It expects higher rates and softer house prices to weigh on spending and home building over the coming year.
What 0.25% costs you
Here is the extra monthly repayment on a 30-year principal-and-interest loan if your lender passes on the full rise, along with what one more rise would add and what this year’s five rises add up to.
| Loan balance | This rise (+0.25%) | If there is another (+0.25%) | All five 2026 rises (+1.25%) |
|---|---|---|---|
| $500,000 | about $82 | about $83 | about $403 |
| $750,000 | about $124 | about $125 | about $605 |
| $1,000,000 | about $165 | about $167 | about $806 |
| $1,250,000 | about $206 | about $208 | about $1,008 |
Illustrative variable rate rising from 6.45% to 6.70% with this decision, from 5.45% at the start of 2026. The dollar change barely moves with your starting rate.
Your lender sets the timing of any change to your variable rate and will write to you with your new repayment. After the September rise, the big four banks passed it on in full from 9 October. Fixed rates don’t change until the fixed term ends.
What it means for buyers
Lenders assess your loan at their rate plus a buffer of about 3%, so each 0.25% rise cuts borrowing power by roughly 2%. On our estimates that is about $10,000 less for a single person earning $100,000, and about $25,000 less for a couple earning $100,000 each. If you have a pre-approval from before today, it is assessed at the old rate, so have it re-checked before you bid at the top of your range. See how much less you can borrow.
The other side is that higher rates are cooling the market. With prices down from their peak and fewer buyers able to borrow as much, buyers who are finance-ready face less competition. See what falling prices mean for you.
Five moves worth making now
- Check what you’re paying. Many borrowers on older loans pay well above what lenders offer new customers, and five rises this year stack on top of that gap. A free rate review takes fifteen minutes, and our refinance calculator shows the break-even.
- Put your savings in an offset. Every dollar in an offset account saves interest at your home loan rate.
- Build a buffer. If you can, pay a little more than the new minimum. The extra sits in your offset or redraw and cushions you if rates rise again.
- Don’t panic-fix. Fixed rates already price in what lenders expect. Fixing buys certainty, not a bargain. Fixed vs variable, explained.
- Struggling? Talk to your lender early. Lenders must consider hardship requests, and options include a temporary lower repayment or a longer loan term. See your options and your rights.
What happens next
The vote was split six to three, with three members preferring to hold at 4.60%, and the RBA said it will watch the data and the outlook to guide its next move. The minutes of this meeting come out on 17 November. The next decisions are on 8 December 2026 and 9 February 2027. We keep every decision, and what it means for your repayments, on our RBA cash rate page and in our rule changes tracker.
Source: RBA, Statement by the Monetary Policy Board: Monetary Policy Decision, 3 November 2026.
RBA November 2026 rate rise: common questions
What is the RBA cash rate now?
4.85%. On Tuesday 3 November 2026 the Reserve Bank raised the cash rate by 0.25%, from 4.60%. It is the fifth rise of 2026, taking the cash rate up 1.25% since January.
Why did the RBA raise rates in November 2026?
Inflation is still too high and is spreading across many goods and services. The RBA raised its inflation forecasts, partly because of higher fuel prices from the Middle East conflict and partly because the economy has been running a little hotter than it thought. It now expects inflation to stay above 3% until late 2027, and it is worried that higher inflation expectations could become entrenched.
How much will the November rate rise add to my repayments?
About $82 a month for every $500,000 owed on a 30-year principal-and-interest loan, or about $165 a month on $1 million, if your lender passes on the full 0.25%. Since the start of 2026, the five rises add up to about $403 a month per $500,000.
When will the banks pass on the rise?
Lenders usually announce within a few days and the new rate applies a week or two later. After the September rise, the big four banks passed it on in full from 9 October. Your lender will write to you with the date and your new repayment. Fixed rates don’t change until the fixed term ends.
Will the RBA raise rates again?
Nobody knows. Three of the nine Board members voted to hold, and the RBA said it will be guided by the data. Its forecasts assume the cash rate stays around 4.8% to 4.9% through 2027, based on market pricing, but some economists think 4.85% is the peak while others warn of another rise by February. The next decisions are on 8 December 2026 and 9 February 2027.
Does the rate rise reduce how much I can borrow?
Yes. Lenders test your loan at their rate plus a buffer of about 3%, so each 0.25% rise cuts borrowing power by roughly 2%. That is about $10,000 less for a single person earning $100,000, or about $25,000 less for a couple earning $100,000 each.
Should I fix my rate after the November rise?
Only if certainty is worth more to you than flexibility. Fixed rates already reflect where lenders expect rates to go, so fixing now is not a bargain. Many borrowers split the loan, fixing part and keeping part variable with an offset account.
Check your rate after the rise
The rate you pay matters more than the cash rate. We’ll compare your loan against what lenders are offering now in a free 15-minute rate review. This is general information, not advice for your situation.