Economy and macroUpdated November 3
Australia lifts its cash rate to 4.85%, an 18-year high
The Saudi Press Agency reported that the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85%, its highest level in 18 years and its fifth increase of 2026, as it sought to curb inflation amid rising living costs. Governor Michele Bullock said global oil prices were one factor keeping inflation higher for longer, but clarified that the increase was not a response to oil prices’ direct effect. The RBA’s focus, she said, was domestic capacity pressures and the risk that businesses pass higher costs on to other goods and services. In its November assessment, the bank linked higher energy prices to renewed conflict in the Middle East, shipping disruption and refinery damage.
Coverage started November 3
Key Actors
- Reserve Bank of Australia