Reserve Bank of Australia raises cash rate to 18-year high
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
The Reserve Bank of Australia raised the cash rate by 25 basis points to 4.85% on November 3, 2026, making it the highest since November 2008. This was the fifth rate increase this year. The decision followed inflation rising 4.3% last month, driven by construction, electricity, and petrol prices.
From goulburnpost.com.au
Why it matters
The rate hike increases the cost of borrowing for homeowners, who have seen a 125 basis point increase in mortgage repayments since the start of the year. The Reserve Bank of Australia indicated that rates would continue to rise until inflation is controlled. This policy change affects the housing market, which is critical to LJ Hooker's business operations.
From goulburnpost.com.au
Who's involved
- Michele BullockGovernor of the Reserve Bank of Australia, leading monetary policy decisions
- Reserve Bank of AustraliaCentral bank of Australia, responsible for monetary policy
- LJ HookerAustralian real estate company whose operations are influenced by monetary policy
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- LJ HookerSpeculative
Interest rate hikes could reduce buyer demand and constrain borrowing capacity, impacting sales activity.
- Commonwealth BankSpeculative
The rate hike could affect margins while reducing loan demand and increasing risk.
- AussieSpeculative
Increased borrowing costs could constrain consumer demand and affect lending revenue.
Keep exploring
The entities involved
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LJ Hooker
Australian real estate company
Nothing else this week.
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Michele Bullock
Governor of the Reserve Bank of Australia