Quick Answer: The Reserve Bank has lifted the cash rate by 0.25 percentage points to 4.85%, its fifth rise of 2026 and the highest level since 2008. If your lender passes it on in full, a $600,000 variable home loan with 25 years left to run will cost about $92 more a month. Savers, on the other hand, stand to gain as deposit rates edge higher. The full decision is in the RBA’s official monetary policy statement.
Announced on Tuesday 3 November, Melbourne Cup Day, the move was widely expected after hotter-than-expected inflation figures. But the vote was split, and what the big banks do next — and whether this is the last rise — matters more for your household budget than the headline number. Here is what the decision means in plain terms, and what to do about it.
What the RBA decided
At its meeting on 2–3 November, the Reserve Bank’s Monetary Policy Board voted to increase the cash rate target by 25 basis points, from 4.60% to 4.85%. The decision was not unanimous: six members voted for the rise and three voted to hold the rate at 4.60%.
This is the fifth increase of 2026, following rises in February, March, May and September. The cash rate started the year at 3.60%, so it has now climbed 1.25 percentage points in nine months. It is the highest the cash rate has been since November 2008.
The new rate takes effect from 4 November. Your own loan rate will not change on that date, though — lenders announce their own moves separately, usually within days, and the change typically lands on your loan a few weeks later.
Why the RBA moved again
Put simply, inflation is still too high and is taking longer to come down than the Bank expected. Annual headline inflation was 4.3% in the year to September 2026, and the Bank’s preferred underlying measure, trimmed mean inflation, was 3.7%. Both are well above the RBA’s 2–3% target band.
In its statement, the Board said inflation “remains elevated” and recent data show it is “broadly based” — in other words, price rises are spread across much of the economy, not confined to a few items. The Bank’s updated forecasts are gloomier than before: headline inflation is now expected to peak at 4.5% at the end of 2026, and not return to the top of the 2–3% target range until late 2027, roughly three quarters later than previously forecast. Higher fuel and commodity prices linked to the Middle East conflict are part of the story.
That is also why the vote split matters. Three of the nine Board members wanted to hold, a sign the decision was finely balanced against a slowing economy and rising unemployment, which hit 4.7% in September. Notably, the Board dropped its previous reference to raising rates further if needed — a softer tone that markets read as a hint the tightening cycle may be near its end.
What it adds to your mortgage
The cash rate is not your home loan rate, but it heavily influences it. When the cash rate rises, lenders’ funding costs rise, and they usually pass the increase on to variable-rate borrowers. After the September rise, all four big banks passed it on in full. Until your lender confirms its November move, the safe assumption is that this rise will land on your rate too.
Based on Canstar estimates for a variable loan with 25 years remaining, if the full 0.25 points is passed on:
| Loan size | Extra per month from this rise | Extra per month across all five 2026 rises |
|---|---|---|
| $600,000 | About $92 | About $456 |
| $750,000 | About $115 | About $570 |
| $1,000,000 | About $153 | About $759 |
These are approximate figures — your actual increase depends on your rate, remaining term and loan type. If you are on a fixed rate, nothing changes until your fixed term ends, but it is worth checking now what rate you will roll onto.
What about savers?
Higher rates are not all bad news. Savers have been the quiet winners of this tightening cycle: term deposit rates above 5.5% were already on offer before this decision, and savings account rates typically edge up after a cash rate rise, though banks are often slower to lift deposit rates than loan rates.
If you have cash sitting in an account paying little or nothing, this is a good moment to compare. Check what your bank is actually paying, look at term deposits if you can lock money away for a set period, and make sure any offset account linked to your home loan is working for you — money in an offset reduces the interest charged on your loan, which is effectively a tax-free return at your mortgage rate.
What to do now: a short checklist
- Check your rate. Log in to your lender’s app or call them and ask what variable rate you are on and when the November rise will hit your loan.
- Ask for a better deal. Lenders will often sharpen a rate for an existing customer who asks — especially one who mentions they are comparing other lenders. A 0.25 point discount from your lender offsets this entire rise.
- Review your offset and redraw. If you have savings, keeping them in an offset account rather than a separate savings account can save more in interest than the savings account earns.
- Recheck your budget. Add the expected increase to your monthly repayments now, before the higher direct debit lands, so there are no surprises.
- Think twice before fixing. Fixed rates are priced on what markets expect next, not on today’s cash rate. With most big banks expecting a pause, fixing at today’s rates could lock you in above where variable rates end up — get advice before deciding.
- If you are struggling, speak up early. Lenders must consider hardship requests, such as a temporary payment pause or a switch to interest-only. The free National Debt Helpline (1800 007 007) can also talk through your options.
Will there be another rise?
Nobody knows for sure, and the RBA itself has not promised anything either way. Its statement finished with the line it always uses: “The Board will continue to do what it considers necessary to bring inflation sustainably back to target.”
The big banks are split on what comes next. CommBank, NAB and Westpac expect the RBA to pause after today — CommBank has called this move an “insurance hike” and does not expect cuts until late 2027. ANZ is the outlier, expecting one more rise, in December or February, and seeing a real risk the cash rate reaches 5.10%. The next scheduled decision is Tuesday 8 December 2026, and the quarterly inflation figures due before then will be the key test.
For borrowers, the practical takeaway is this: plan as if 4.85% is where rates sit for a while, hope the pause the majority of banks expect actually arrives, and use the time to make sure your loan is as sharp as it can be.
Frequently asked questions
What is the cash rate now?
4.85%, after a 0.25 percentage point rise announced on 3 November 2026. It is the fifth rise of 2026 and the highest level since 2008.
When will my repayments go up?
Your lender will announce its own change, usually within days of the RBA decision, and it typically takes effect a few weeks later. Check your lender’s announcement or your loan app for your new repayment amount.
How much extra will I pay on a $600,000 loan?
About $92 a month, according to Canstar estimates, if your lender passes on the full rise and your loan has 25 years remaining. Across all five 2026 rises, that is about $456 a month extra.
Is this the last rate rise?
Most big banks expect a pause from here, but ANZ forecasts one more rise. The RBA meets next on 8 December 2026 and says it will be guided by the data, particularly inflation.
Do savings rates go up too?
Usually, yes, but more slowly than loan rates. Term deposits above 5.5% were available before this decision. Compare savings accounts and term deposits rather than assuming your bank will pass the rise on automatically.
This article is general information only and is not financial advice. Your lender’s response and your own circumstances will determine what this decision means for you.
