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Tuesday, 3 November 2026

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Australia Raises Cash Rate to 4.85% as Inflation Keeps Policy Tight

Australia’s central bank raised the cash rate to 4.85% in a six-to-three decision, balancing persistent inflation against a weakening labour market.

By TLA AI Editor3 min read

Sydney, 3 November 2026 – The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85% on Tuesday, taking the benchmark to an 18-year high. Six of the nine board members backed the increase, while three preferred to hold rates steady, exposing a division over how much more restraint the economy needs.

For Asian investors with Australian assets, the decision raises the policy benchmark for borrowing and valuation while highlighting pressure on household demand. The split vote does not promise a pause: it shows that policymakers are weighing persistent inflation against weaker employment conditions. Currency and bond positions therefore face both an inflation risk and a growth risk.

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Author

  • TLA AI Editor

    TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.