On Melbourne Cup Day, the Reserve Bank of Australia pushed its cash rate target to its highest level in 18 years, lifting it by 25 basis points to 4.85%. The RBA cash rate hike was decided by a notably split 6–3 vote of the Monetary Policy Board, a public signal that even inside the central bank, the right next step is contested.
This article summarises what was announced on 3 November 2026, based on the RBA’s own media release and reporting from Australian outlets. The data journalism team at gf6.com has written it as a plain-language rewrite of a public event — no new reporting, no added figures beyond what the RBA and its reporters have already stated. Understanding the RBA cash rate hike in full requires looking at these details closely.
The finding — what the RBA announced — RBA cash rate hike
The headline fact is simple and striking: Australia’s cash rate target now sits at 4.85%, its highest level in 18 years, after the board voted 6–3 to raise it by 25 basis points from 4.60%. It is the fifth rate rise of 2026, with the RBA having resumed hikes in September after an earlier pause. These figures put the RBA cash rate hike into clearer perspective.
The key numbers from the decision, exactly as announced:
| Item | Value |
|---|---|
| Decision date | 3 November 2026 (Melbourne Cup Day) |
| New cash rate target | 4.85% |
| Previous cash rate target | 4.60% |
| Size of move | +25 basis points |
| Board vote | 6–3 in favour |
| Rate rises so far in 2026 | 5 (hikes resumed in September after a pause) |
| September CPI (annual) | 4.3% |
| Level context | 18-year high |
Alongside the decision, the RBA released its quarterly Statement on Monetary Policy with updated economic forecasts. The Australian dollar fell after the announcement. This context matters for anyone following the RBA cash rate hike.
What it means for borrowers and markets
A 25 basis point rise is a small step in isolation, but context matters. This is the fifth increase of the year, and it comes after the board had briefly paused, suggesting policymakers now judge that the earlier tightening has not yet done enough to bring inflation back toward target. It is a central thread in the wider RBA cash rate hike.
The trigger most widely cited was the September CPI print at 4.3%, which was hotter than markets had expected. In general terms, when headline inflation surprises to the upside, central banks that have publicly committed to a target tend to respond with tighter policy rather than wait — and that is the pattern reflected here. Such details shaped how the RBA cash rate hike unfolded.
The 6–3 split is arguably as important as the decision itself. A divided vote is widely read as a sign that the board is close to the end of its tightening cycle and uncertain about the path ahead, with reasonable arguments on both sides. It does not, on its own, tell you whether the next move is another hike or a hold. This is one of the defining aspects of the RBA cash rate hike.
The currency reaction — the Australian dollar falling after the announcement — is a reminder that markets had partly priced in the decision and were listening closely to the accompanying Statement on Monetary Policy for signals about what comes next. The event was reported by multiple Australian outlets, including ABC News and SBS News.
Why a cash rate decision matters beyond Australia
The cash rate is the interest rate that anchors the cost of money across the Australian financial system. When it moves, variable mortgage rates, business lending rates and deposit rates typically follow, though not always one-for-one and not always immediately. That is why a 25 basis point change can dominate a day of news coverage.
Internationally, the decision fits a broader pattern of advanced-economy central banks continuing to grapple with inflation that has proven stickier than hoped. A hike to an 18-year high in a country like Australia is one data point in that global story, and it is one reason international investors watch RBA meetings even if they have no direct exposure to the Australian economy. If you want to see how the branch network sits on the ground, you can browse banks in Australia in our directory.
Explore the full data behind this article: bank branches worldwide and ATMs worldwide in the gf6.com directory.
Methodology
This piece is a rewrite in English of a publicly reported event. The primary source is the Reserve Bank of Australia’s own media release of 3 November 2026, available here: RBA media release. The decision was independently reported by Australian outlets including ABC News and SBS News.
All figures — the new 4.85% cash rate, the 4.60% previous level, the 25 basis point move, the 6–3 vote, the September CPI reading of 4.3%, the count of five rate rises in 2026, and the characterisation as an 18-year high — are taken directly from those sources. No additional figures, forecasts or quotes have been added. gf6.com is a worldwide directory of bank branches and ATMs; this article is editorial coverage, not official RBA communication.
Frequently asked questions
What did the RBA actually decide on 3 November 2026?
The Monetary Policy Board voted 6–3 to raise the cash rate target by 25 basis points, from 4.60% to 4.85%. The decision was announced on Melbourne Cup Day.
Why is 4.85% described as an 18-year high?
Because the Australian cash rate target has not been at this level for 18 years, according to the RBA. The characterisation reflects the level itself, not the size of the move.
How many times has the RBA raised rates in 2026?
Five times, according to the RBA. After an earlier pause, the central bank resumed hiking in September and lifted again in November.
What prompted this particular hike?
The decision followed September CPI data showing inflation at 4.3%, which came in hotter than expected. The RBA also published its quarterly Statement on Monetary Policy with updated forecasts alongside the decision.
What does a 6–3 split vote signal?
It shows the board was divided, with a meaningful minority opposing the hike. Divided votes are generally read as a sign of elevated uncertainty about the path of rates from here, but on their own they do not predict the next move.
How did markets react?
The Australian dollar fell after the announcement. The article does not quote specific currency levels — only the direction reported.
This article was produced with AI assistance from publicly available sources and is handled under our editorial standards and AI policy.
I have been online since 1995. For many years, I worked in the e-commerce sector, setting up several online shops, and have always been interested in data analysis. In 2007, I moved to the Seychelles to work from there or as a digital nomad. In recent years, I have increasingly specialised in the financial sector. I manage the Seychelles’ Commercial Register and am also very familiar with the offshore world. GF6.com is a project I have been working on for many years. I built and curated the 445,000-entry bank database myself over a period of six years, and for the past two years or so I have also been using AI to achieve better structures.
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