At 2.30pm on Tuesday 3 November 2026 the Reserve Bank's Monetary Policy Board raised the cash rate target by 25 basis points to 4.85%. The new rate took effect on Wednesday 4 November. The Bank's statement said inflation "remains elevated" and that it is "not expected to reach the top of the 2–3 per cent target range until late 2027".
This is general information, not financial advice. A cash-rate decision does not change your loan by itself. Your lender decides whether to pass it on, how much, and from when. A fixed rate stays put until the fixed period ends.
Five rises in 2026, on the RBA's own table
Every figure here is from the RBA's cash rate target table, checked on 8 November 2026. The table lists each change by the date it took effect, which is the day after the announcement.
| Effective date | Change | Cash rate target |
|---|---|---|
| 4 February 2026 | +0.25 | 3.85% |
| 18 March 2026 | +0.25 | 4.10% |
| 6 May 2026 | +0.25 | 4.35% |
| 17 June and 12 August 2026 | no change | 4.35% |
| 30 September 2026 | +0.25 | 4.60% |
| 4 November 2026 | +0.25 | 4.85% |
The year started at 3.60%, the setting left by three cuts in 2025. Five rises later it sits at 4.85%. That is +1.25 percentage points between February and November, and the 2025 cuts are more than undone.
▶ Cash rate target through 2026 (RBA)
What 0.25 does to a repayment
The mortgage repayment calculator uses the standard principal-and-interest formula, rounded to the nearest dollar. Here are the assumptions, all of them:
- Starting rate 6.14%. The average rate on new owner-occupier principal-and-interest loans in September 2026, from the RBA's lenders' interest rates (Table F6). It mixes variable and fixed loans. Your rate will differ.
- New rate 6.39%. The starting rate plus the full 0.25. That assumes your lender passes the whole rise on.
- 30-year term, principal and interest, no fees, no offset, monthly repayments.
- Loan sizes. $731,000 is the average new owner-occupier dwelling loan in the ABS Lending Indicators, June quarter 2026, original series. The September quarter is due from the ABS on 11 November. $500,000 and $1,000,000 are round-number illustrations.
| Loan | At 6.14% | At 6.39% | Change each month | Change over a year |
|---|---|---|---|---|
| $500,000 | $3,043 | $3,124 | +$81 | about +$976 |
| $731,000 average new owner-occupier | $4,449 | $4,568 | +$119 | about +$1,427 |
| $1,000,000 | $6,086 | $6,249 | +$163 | about +$1,952 |
The yearly figures use the unrounded monthly change ($81.35, $118.94 and $162.70) times 12.
▶ Extra each month after the 4 November rise
Three numbers worth a headline
1. The highest cash rate in 18 years
At 4.85% the cash rate is now above every setting since late 2008. The last time it was higher was 5.25%, the target that took effect on 5 November 2008 and held until the Bank cut to 4.25% on 3 December 2008. The peak of the 2010–11 cycle was 4.75%, and the peak of the 2022–23 cycle was 4.35%. Source: RBA cash rate target table, checked 8 November 2026.
2. All five 2026 rises add about $581 a month to an average loan
Take the $731,000 average new owner-occupier loan and a rate that has tracked the cash rate one-for-one all year. That is an assumption, and many loans will have moved by less. Starting 1.25 percentage points lower, at 5.14%, the repayment is $3,987 a month. At 6.39% it is -$4,568. The difference is -$581 a month, or about $6,970 a year. On $500,000 the same 1.25 points add $397 a month. On $1,000,000 they add $795. Sources: RBA cash rate table and Table F6; ABS Lending Indicators, June quarter 2026; AusCalcs repayment formula.
3. Faster than the last big cycle, smaller in total
The 2026 cycle has delivered five rises between February and November, 1.25 percentage points from 3.60% to 4.85%. The 2022–23 cycle was 13 rises between May 2022 and November 2023, from 0.10% to 4.35%, a total of 4.25 points. The 2009–10 cycle was seven rises from 3.00% to 4.75%, from October 2009 to November 2010. Measured from the floor, this cycle is the smallest of the three. Measured by where it has landed, it is the highest. Source: RBA cash rate target table, checked 8 November 2026.
What to do with it
Check your lender's notice. Banks usually announce their own variable-rate change within days of a decision, with an effective date. Put that date and rate into the repayment calculator.
Offset and extra repayments are worth more now. Each dollar in an offset saves interest at the loan rate, so a higher rate means a bigger saving. The offset calculator and the extra repayments calculator both run on your figures.
Compare before you accept the new rate. The refinance calculator prices the gap between your rate and an offer, after switching costs. A fixed loan may carry break costs; the break-cost calculator gives a rough guide.
The next dates. Minutes of the November meeting are scheduled for 17 November. The next decision is Tuesday 8 December 2026, per the RBA's 2026 meeting schedule. Our earlier 3 November guide priced the move before it was announced.