The Reserve Bank of Australia (RBA) is expected to hike the cash rate today as inflation continues to exceed expectations.
A 0.25% rate hike would take the cash rate to 4.85%, and lift the average rate for a new owner occupier home loan to around 6.75% p.a.
Savings account customers stand to gain from any rate hikes that occur, although there's no guarantee banks will pass any rate increases on to savings accounts in full. But if the banks do hike by 0.25%, the average bonus savings account rate would increase to about 5.30% p.a.
Keep updated with interest rate changes on Savings.com.au
Published 3:40pm, Tuesday
Thanks for joining us on our live blog on the monetary policy board's cash rate decision for November 2026.
Just reiterating: the RBA has lifted the official cash rate by 25 basis points to 4.85% in a six-three split decision on Melbourne Cup Day.
It's the fifth cash rate increase for the year after hikes in February, March, May, and September.
Please check Savings.com.au to keep up with the latest interest rate movements across home loans and savings accounts over the coming days.
Australians paying a 'hefty price' for Middle East conflict: Chalmers
Published 3:35pm, Tuesday
Federal Treasurer Jim Chalmers said while today's rate hike was expected, it doesn't make it easier for Australian families and businesses to absorb.
He also noted today's decision was not unanimous.
'This is unsurprising given considerable uncertainty in the outlook and risks in both directions,' he said in a statement.
He blamed the war in the Middle East for pushing up inflation and interest rates around the world and noted markets expect rates to rise in every major advanced economy.
Dr Chalmers also defended the government's economic record, saying the RBA's decision noted 'public demand was weaker than expected over the first half of the year'.
'Difficult day for millions of Australians': Angus Taylor
Published 3:30pm, Tuesday
Federal opposition leader Angus Taylor said Australia's cash rate is higher than any other major advanced economy - and at their highest level since Kevin Rudd was Prime Minister.
He said it was even harder for families to make ends meet and even harder for small businesses to stay afloat.
Mr Taylor said 'it's a punch in the guts to Australians who have a go'.
He blames government spending for fuelling inflation.
Higher rates, fewer homes: Housing Industry Association
Published 3:23pm, Tuesday
The HIA said today's cash rate increase puts the nation further away from achieving its home building targets.
It says higher interest rates are reducing the capacity of households to purchase a home and affecting the volume of new homes being delivered by industry.
It said the impact was already being felt, with new home sales in the September quarter at their lowest level in 18 months.
Macquarie Bank moves to increase variable rates
Published 3:17pm, Tuesday
Macquarie Bank is the first of the Australian banks to announce changes to its variable rate products - home loans and deposit accounts - after the RBA announcement.
Macquarie will increase its home loan reference rates on home loans and ongoing variable rates on savings and transaction accounts by 0.25% from 19 November 2026.
No talk of 'increasing the cash rate further'
Published 3:13pm, Tuesday
As usual, the RBA's statement said the board would 'continue to do what it considers necessary to bring inflation sustainably back to target'.
However, unlike the September statement, there was no mention of the key line of 'increasing the cash rate target further if needed'.
Read into that what you will.
Domestic capacity constraints 'tighter than previously assessed'
Published 3:03pm, Tuesday
It seems Australia remains at the mercy of its own domestic constraints on growth.
The RBA says this is indicated by the persistence of high inflation and cost pressures, despite the easing in GDP growth and the rise in unemployment.
The outlook for inflation has been revised 'materially higher' from the August SoMP, thanks largely to fuel and other conflict-related costs flowing through the economy.
Tighter monetary policy is expected to keep GDP growth below potential, along with higher-than-expected energy prices and a softer housing market.
The economy, currently operating with excess demand, is judged to reach balance next year, slightly later than previously thought with spare capacity emerging in 2027, according to the SoMP.
Interest rates expected to go up globally: SoMP
Published 2:55pm, Tuesday
The ongoing Middle East conflict has pushed up energy prices globally, increasing headline inflation across most economies, according to the Statement of Monetary Policy.
Commodity prices have also risen, driven by conflicts in the Middle East and Ukraine.
However, global economic demand has also been more resilient than expected, supported by the AI boom overseas.
The RBA expects most advanced economy central banks to increase policy rates at least twice by the end of 2027.
Inflation to remain above 3% in 2027
Published 2:49pm, Tuesday
The Statement of Monetary Policy forecasts headline and underlying inflation to remain above 3% for the coming year and reach the mid-point of the range in mid-2028.
However, the risks to the inflation outlook are judged to remain skewed to the upside reflecting risks posed by the Middle East conflict.
Tighter monetary policy, alongside a weaker outlook for the housing market, is expected to keep GDP growth below trend.
The unemployment rate is projected to reach more than the 5% mark by the end of 2028.
Middle East conflict drives uncertainty
Published 2:43pm, Tuesday
The RBA's statement singled out the unresolved conflict in the Middle East as heightening uncertainty about the outlook for domestic economic activity and inflation.
Global oil supply disruptions are maintaining upward pressure on global and domestic energy prices and inflation.
This may also cause lower growth overseas and in Australia.
At home, the statement said weak productivity growth continues to constrain potential growth and there are uncertainties about the extent and economic effects of the housing market downturn.
Higher fuel prices, AI investment drive today's decision
Published 2:38pm, Tuesday
The RBA's statement accompanying the decision said inflation remains elevated and the inflation outlook has been revised 'materially higher'.
This reflects higher fuel prices, AI-related investment is driving rapid growth in prices for technology-related goods, and inflation for many goods and services remains high, the statement said.
Inflation is now forecast to remain elevated through much of 2027.
The RBA also expects the unemployment rate to rise by more than it expected in its August forecasts.
Not a unanimous decision
Published 2:35pm, Tuesday
Today's cash rate call was not unanimous among the board's nine members.
Six voted to increase the cash rate target while three voted to leave the cash rate unchanged.
RBA hikes the cash rate to 4.85%
Published 2:30pm, Tuesday
The Reserve Bank cash rate will increase the cash rate by 25 basis points to 4.85% (up from 4.60%).
It’s the fifth hike to the cash rate in 2026 following 25-basis point increases in February, March, May, and September.
The latest increase sees the cash rate 1.25% higher than where it started the year.
The Reserve Bank has also released its latest quarterly Statement of Monetary Policy (more to come on this).
Will everyone be on board for a November rate increase?
Published 2:25pm, Tuesday
With economists in widespread agreement the Reserve Bank monetary policy board is likely to raise the cash rate today, it remains to be seen whether it will be a unanimous decision among the board’s nine members.
The split ratio on cash rate decisions has only been publicly released since July 2025 in a bid to increase transparency.
Since that time, there have been three split votes:
- 8-1 vote to raise the cash rate in May 2026 at 4.35% (eight to raise; one to hold)
- 5-4 vote to raise the cash rate in March 2026 at 4.10% (five to raise; four to hold)
- 6-3 vote to hold the cash rate in July 2025 at 3.85% (six to hold; three against)
How much could a rate hike cost mortgage holders?
Published 2:20pm, Tuesday
If you have a variable-rate home loan, you will be wanting to know what another rate hike will mean for your hip pocket.
A 25-basis point increase will see repayments on an average new home loan of $731,000 rise by about $115 per month - or about another $1,380 extra a year.
However, this would come on top of four previous interest rate increases - in February, March, May, and September - which have already seen the average home loan repayment rise by around $455 per month so far in 2026.
A fifth rate increase would see average monthly repayments up an extra $570 a month - or $6,840 extra a year - so far in 2026.
For those looking to take out a new home loan, it’s estimated borrowing capacity for an average full-time wage earner looking at an average new home loan is reduced by around $11,000 as a result of another 25-basis point interest rate hike.
A fifth cash rate hike in 2026 will have knocked off more than $58,000 in borrowing capacity for a single borrower since the start of the year and around $116,000 less for a couple on average incomes.
For borrowers concerned about their ability to meet higher mortgage repayments, it’s wise to speak to your lender or mortgage broker early.
There are several options open to borrowers to support them during periods of hardship and lenders are legally obliged to assist.
Why would the Reserve Bank raise the cash rate in November?
Published 2:15pm, Tuesday
Simply put, inflation.
Key quarterly inflation data released last week put annual inflation at 4.3% in September, up from 4% in August.
The Reserve Bank's preferred measure of trimmed mean inflation also increased to 3.7% from 3.6%.
Over the September quarter, the headline figure showed inflation increased 1.3% while the trimmed mean jumped 1%, higher than the RBA's forecast of 0.8%.
The data showed the increases were largely driven by housing and fuel costs.
The RBA has repeatedly declared tackling high inflation is its number one priority with the goal of bringing inflation back to the target range of 2-3%.
It has only one tool to do that: raising the cash rate.
However, the monetary policy board may also be mindful of the latest jobs figures that delivered a surprise 4.7% unemployment rate in September, the highest rate in five years.
The Reserve Bank has a dual mandate of delivering price stability through controlling inflation while endeavouring to maintain full employment.
What are experts predicting for today's decision?
Published 2:10pm, Tuesday
Economists and commentators are widely expecting there will be a 25-basis point increase to the cash rate today, taking it to 4.85%.
That would make it the highest cash rate Australia has seen since 2008 when it was in a steep cutting cycle amid the fallout of the Global Financial Crisis.
A cash rate of 4.85% would also see Australia's cash rate remain the second-highest among the world’s developed economies, behind only Iceland.
The economic teams at each of the big four banks (CBA, Westpac, NAB, ANZ) are unanimous in predicting a hike today while financial markets are pricing in an 80% chance of a November rate increase.
When will the RBA announce its interest rate decision?
Published 2:05pm, Tuesday
While most eyes will be on the race that stops the nation this afternoon, the RBA's monetary policy board will deliver its verdict on the cash rate at 2:30pm AEDT (NSW, Victoria, ACT, Tasmania). Now for the other time zones...
Queensland will get the verdict at 1:30pm AEST and South Australians will learn of the decision at 2:00pm (Australian Central Daylight Time).
For the Northern Territory, it will be 1:00pm (Australian Central Standard Time) while in Western Australia, the decision will be announced at 11:30am AWST.
Reserve Bank governor Michele Bullock is scheduled to appear at her customary post-meeting media conference an hour after the decision is handed down.
Welcome: LIVE coverage of the RBA's November cash rate decision
Published 2:00pm, Tuesday
Hello and welcome to Savings.com.au's live RBA cash rate coverage. I'm Denise, Savings.com.au's senior finance journalist, and I'll be with you today giving you the latest on the RBA's November decision, expert and industry commentary, and major banks' and lenders' responses.
PLEASE refresh this page periodically for the latest updates and if you have any questions or comments, hit me up at denise.raward@savings.com.au.