Australia's central bank lifts rates to 18-year high of 4.85%
TLT•The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85%, its fifth hike this year, bringing the 2026 increase to 125 basis points. Three of nine board members favored holding rates; core inflation was 3.7%, above the bank's 2% to 3% target range.
1. Rate decision
The Reserve Bank of Australia raised its cash rate by 25 basis points to an 18-year high of 4.85% at its November meeting. It was the fifth hike of the year, taking the total increase to 125 basis points. Three of the nine board members wanted to leave rates unchanged.
2. Inflation backdrop
The board judged further tightening was needed to bring inflation down. Core inflation was running at 3.7%, above the bank's target range of 2% to 3%.
