RBA Rates Announcement Nov 2026

The RBA did what the market expected and lifted the official cash rate by 0.25% today, marking a fifth hike this year.

With the benchmark rate now up to 4.85%, the RBA explained why it went for a strictly business approach on Melbourne Cup Day after a 6–3 vote in favour.

‘Since the previous meeting, the data have confirmed that underlying inflation remains broadly based,’ stated the RBA.

‘Inflation is now expected to remain above 3 per cent for the coming year and there is an increasing risk that higher inflation expectations will become embedded.

‘The Board is conscious of the period in which inflation has been too high. Given the revised inflation outlook and the continuing upside risks, the Board judged that a further tightening in financial conditions is warranted to support the return of inflation to target,’ said the Central Bank in its statement.

While this is another blow for Sydney home loan mortgage borrowers, there may be some welcome news ahead of Christmas.

The Reserve Bank now is less likely to deliver another interest rate rise at its December 8 meeting.

The RBA may prefer to assess the economic impact of its recent spate of rate hikes before making such a move on the eve of Christmas.

Today’s increase comes against a backdrop of stubbornly high inflation.

The CPI rose to 4.3% in the year to September, driven largely by elevated fuel costs.

The annual trimmed mean, which strips out price volatility to provide a clearer picture of underlying inflation, hit 3.6%.

Both measures remain above the RBA’s target range of 2-3%, reinforcing concerns that inflation is proving harder to bring under control than expected.

Some analysts are tipping further increases next year, pushing the benchmark cash rate into the 5% range.

Such a scenario would heap even more pressure on Sydney borrowers as the benchmark rate hits an 18-year high today.

In terms of home loan costs since January, a $500,000 mortgage is now costing around $250 per month extra. For borrowers on a $700,000 mortgage, the five hikes this year adds about $6,450 to annual repayments.

As for inflation forecasts, the RBA noted that it is now forecast to remain elevated through much of 2027, ‘and is not expected to reach the top of the 2–3 per cent target range until late 2027, around three quarters later than previously forecast’.

Though, as we all know, forecasting inflation rates is fraught with danger.

If you are considering reviewing your current arrangements, reach out to Mortgage Broker Sydney.

Our friendly brokers can meet you wherever is most convenient: your home, office, or a local cafe.

In addition, we are here to guide you on various strategies such as uncovering lower rates, enhancing savings, consolidating debts, and alleviating the impact of rising household prices.