The RBA cash rate is 4.85%. It last changed on 3 November 2026, when the Reserve Bank raised it by 0.25%. The next decision is on 8 December 2026.
What is the RBA cash rate right now?
4.85%. The Reserve Bank’s Monetary Policy Board raised it by 0.25% on 3 November 2026, on a 6 to 3 vote.
That is the fifth rise this year and the highest the cash rate has been since 2008.
Why did the RBA raise rates?
The Board gave 3 main reasons in its statement.
Inflation is still high and broadly based, and the Board expects it to stay above 3% for the coming year. It does not expect inflation back at the top of the 2% to 3% target range until late 2027.
Higher fuel and commodity prices tied to the conflict in the Middle East are feeding through into other prices, and AI related investment is pushing up the cost of technology goods.
Domestic capacity pressures are judged to be a little tighter than earlier thought, even though unemployment has risen and is expected to rise further.
The Board also noted the economy is slowing and housing prices have fallen significantly, and that earlier rises have already tightened conditions. It still judged one more rise necessary.
What does a 0.25% rise do to your repayment?
On a $600,000 loan with 30 years left, principal and interest, a 0.25% rise adds roughly $96 a month. On $400,000 it is about $64, and on $1,000,000 about $160. Those figures assume a rate moving from 5.75% to 6.00% and are an example only, not a quote.
Your own number depends on your balance, your rate, your remaining term and whether you are principal and interest or interest only.
Work out your own figure in 30 seconds. Put your balance, rate and term into the Rate Rise Calculator and it will show you the new repayment and the increase.
Does my lender have to pass the rise on?
No. The cash rate is what banks pay, not what you pay. Lenders decide their own variable rates and they do not all move by the same amount or on the same day.
Watch for 2 things. How much of the 0.25% your lender passes on, and the date it starts. Most announce within a week or 2 and apply it a few weeks later.
If you are on a fixed rate, nothing changes until your fixed term ends. That is the date worth having in your calendar.
When is the next RBA decision?
8 December 2026. After that the Board meets on 9 February, 23 March, 4 May, 22 June, 10 August, 28 September, 2 November and 14 December 2027. The decision is announced at 2.30pm on the second day of each meeting.
What should you actually do about it?
Check what rate you are on right now. Most people cannot say, and that is the whole problem. It is on your last statement or in your banking app.
Then ask your lender what they would give a new customer with your loan size and equity today. Existing borrowers are commonly on higher rates than new ones at the same bank, and the gap tends to widen the longer you stay put.
Refinancing is not automatically the answer. Costs, your equity position and whether your current lender will match a better offer all come into it. The point is to find out where you stand rather than assume.
If you want me to check your rate against what is available and tell you plainly whether it is worth moving, send me your lender, your balance and your current rate.
Last updated 3 November 2026, after the RBA’s November decision. Always check that date. If the RBA has met since then, confirm the current cash rate at rba.gov.au.
Karan Kapoor is a Melbourne mortgage broker specialising in first home buyers and SMSF lending. Sklupple Pty Ltd (ACN 676 755 990) trading as KK Talks Finance is a Credit Representative (CR No. 569266) of Australian Finance Group Ltd (ACL 389087).
General information only. It does not take into account your objectives, financial situation or needs. The repayment figures above are examples based on stated assumptions, not quotes, and your lender’s rates and timing are set by them. Confirm the current cash rate at rba.gov.au and talk to me before you rely on any of this.