RBA Raises Cash Rate to 4.85% | November 2026

‍The RBA has lifted the cash rate to an 18-year high of 4.85%. Oliver Hume explains what it means for mortgage holders and the property market. 

The RBA Board surprised absolutely no-one today and raised the cash rate to an 18-year high of 4.85%. The last time the cash rate was at this level was when they were on the way down in 2008 as central banks around the world slashed rates in response to the Global Financial Crisis.

If the rise is fully passed on, the impact on standard variable rates isn’t quite as historic because of how spreads between the cash rate and lending rates move around, but mortgage holders will have their rates very close to the highs experienced at the end of 2023 and early 2024.

Does today’s decision change the outlook for property?

The outlook for housing and land markets hasn’t changed because of today’s decision. No matter when this rate hike was delivered, it has been expected for most of the last few months. It’s going to be a tough last few months of the year, and probably into the first quarter of 2027.  

Plenty of forecasters and financial markets expect this hike to be the last in the cycle, with a significant period of no change as the Bank monitors the data and hopefully watches inflation return to the middle of the target range.

The fundamentals underpinning demand for housing haven’t changed. Population growth remains strong and demand exceeds supply in most markets. Even in those with sufficient new supply, sales have not kept pace with new household formation. Once the final rate hike is delivered, and households can be sure their borrowing capacity and mortgage payments won’t rise further, the pieces will be in place for a return to increasing levels of transactions and moderate price gains.

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ENDS

Media enquiries and interview requests to:

Lilly Mackay
Oliver Hume
l.mackay@oliverhume.com.au 
0437 899 949

or

Ben Ready
RGC Media & Mktng
ben@rgcmm.com.au
0415 743 838