RBA raises cash rate to 4.85% on majority vote

Nov 2, 2026 22:31 ET · 3h ago

TREE NEWS update: Australia’s central bank raised its cash rate target by 25 basis points to 4.85% on a majority vote, with six members backing the increase and three voting to hold at 4.60%. The Reserve Bank of Australia said inflation remains elevated and recent data show it is broadly based, with forecasts putting inflation high through most of 2027 and back within the upper bound of the 2%–3% target only later that year.

Original source

AI take

The split vote is the signal worth noting: a 6–3 decision means the case for holding is no longer marginal, even as the majority judged inflation broad enough to require another move. The more consequential detail is the forecast path — inflation staying high through most of 2027 and only re-entering the target band later that year implies a long stretch of restrictive policy rather than a near-term pivot. Whether that three-member dissent grows at coming meetings is the open question.

Generated by AI for reference only.

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