RBA lifts interest rates for fifth time this year

On November 2, 2026, the Reserve Bank of Australia (RBA) raised official interest rates to a new high of 4.85%, an 18-year peak, marking its fifth increase this year. This move aims to curb inflation which has risen despite previous hikes and currently stands outside the RBA's target band of 2-3%. The rate rise is expected to cause further financial strain on mortgage holders in Australia, particularly in areas like Sydney’s western suburbs, where residents are already experiencing significant cost-of-living pressures. Economists warn that this could lead to a sharper economic slowdown and potentially push the country towards recession, impacting tens of thousands of jobs. Treasurer Jim Chalmers is under pressure to address government spending as part of the response to these monetary policy changes.