RBA lifts rates to 4.85% as broad-based inflation persists, FC Capital says
TLT•The RBA raised rates by 25 basis points to 4.85% in a 6-3 vote on November 3, 2026, and forecast inflation would reach its 2%-3% target range only in late 2027.
1. Rate decision and outlook
The RBA raised interest rates by 25 basis points to 4.85% on November 3, 2026, in a 6-3 vote. It forecast inflation would return to its 2%-3% target range only in late 2027, roughly three quarters later than previously expected. Annual headline inflation rose to 4.3% in September from 4% in August, as domestic capacity pressures compounded price shocks related to the Iran war. The RBA expects sharply slower growth without a recession, and the governor signaled a possible pause to assess the effects of five rate increases.
