RBA raises cash rate to 4.85%, its highest since 2008

The Reserve Bank of Australia lifted its official cash rate to 4.85%, the Guardian reported, marking the highest level since 2008. The increase, from 4.6%, represents the central bank’s fifth rate hike of the year.

The move is aimed at reining in surging inflation, which the Guardian said had risen to 4.3% in the year to September. Officials cited an ongoing global oil shock triggered by the war in the Middle East as a factor behind the price pressures.

The rate rise will affect mortgage borrowers, a point the Guardian noted as expected after recent tough talk from senior central bank officials. The decision follows a series of statements in recent days and weeks warning that further action might be needed to contain inflation.

Why it matters

Higher rates increase borrowing costs for households with mortgages and signal the RBA’s focus on curbing inflation.

Key details

Location

Australia · Oceania

Reported by

The Guardian

First reported

3 Nov 2026, 09:24 IST

Key names

RBA, Reserve Bank, Reserve Bank of Australia, Middle East

Section

Business

Sources

This is an independent summary. Read the full, original reporting from the publisher:

• The GuardianRBA interest rates: Reserve Bank hikes cash rate for fifth time this year in blow to mortgage holders 3 Nov, 09:24

Read the full story at The Guardian ↗

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