# RBA lifts the cash rate to 4.85% in a 6 to 3 vote, the highest since 2008: what it costs landlords

> The RBA raised the cash rate by 0.25 points to 4.85% on 3 November 2026, its fifth rise this year, split 6 to 3. What it means for investment loans and rents.

- Published: 3 November 2026
- Section: News & Policy
- Author: Landlord Weekly Editorial Team
- URL: https://www.landlordweekly.com/articles/rba-raises-cash-rate-4-85-november-2026

The Reserve Bank raised the cash rate by 0.25 percentage points to 4.85% on Tuesday 3 November, its fifth rise of 2026 and the highest cash rate since late 2008. The decision was split: six members of the Monetary Policy Board voted for the rise and three voted to hold at 4.60%.

The new target takes effect on 4 November. Markets and all four big banks had expected the move after the ABS reported [annual inflation of 4.3%](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026) for September, as we covered in [this week's issue of The Weekly](https://www.landlordweekly.com/articles/cpi-4-3-percent-rba-decision-3-november-2026).

**Key takeaways**

- The cash rate is now 4.85%, up a full 1.25 points since the start of 2026. Rises came in February, March, May, September and November.
- Three of the nine Board members voted to hold, the clearest sign yet that the Board is divided on how much further to go.
- The RBA now expects inflation to stay above the 2 to 3% target until late 2027, about three quarters later than it forecast in August.
- On a $600,000 interest-only investment loan, a rise passed on in full adds $125 a month, taking the repayment to $3,500 at 7.00%.
- Macquarie is passing the rise on from 19 November. Check your own lender's notice for your date.

**4.85%**: RBA cash rate target from 4 November 2026, the highest since late 2008 (RBA)

## What the Board said

The [statement](https://www.rba.gov.au/media-releases/2026/mr-26-30.html) says inflation is still elevated and broadly based, pointing to higher fuel prices, tighter capacity in the economy than previously estimated, and firms passing on their costs. The Board judged that "a further tightening in financial conditions is warranted".

It also flagged "an increasing risk that higher inflation expectations will become embedded", and uncertainty from the conflict in the Middle East. At her press conference, Governor Michele Bullock said, [according to SBS](https://www.sbs.com.au/news/live-blog/rba-november-2026-interest-rates-decision-live/f6csn2n1w), that the Board was "not tightening monetary policy because of the direct impact of oil prices on inflation", but because of domestic capacity pressures.

The three members who voted to hold gave more weight to the downside risks: a cooling housing market, rising unemployment and no sign of faster wage growth. They wanted more data after four earlier rises.

## The new forecasts

The [November Statement on Monetary Policy](https://www.rba.gov.au/publications/smp/2026/nov/outlook.html) pushes back the return to target. Inflation is now forecast to stay elevated through much of 2027 and not return to the top of the target band until late 2027.

The RBA also expects the economy to slow further and unemployment to rise by more than it forecast in August. The [ABC reports](https://www.abc.net.au/news/2026-11-03/rba-lifts-interest-rates-november-2026-highest-rate-in-18-years/107340050) that the unemployment forecast for December 2028 rose to 5.1%, from 4.8%. Unemployment was 4.7% in September.

On housing, the Statement says established home prices have fallen faster than expected and that the outlook for dwelling investment has been revised down. For landlords, that points to a slower pipeline of new rental supply over 2027 and 2028.

## What it costs on an investment loan

We use the same example as our monthly issues: a $600,000 investor loan, which is 80% of a $750,000 property. At Cotality's latest national gross yield of 3.9%, that property earns about $2,440 a month before expenses.

| Scenario | Rate | Interest-only, per month | Principal and interest over 30 years, per month |
| --- | --- | --- | --- |
| After the September rise, passed on in full | 6.75% | $3,375 | $3,892 |
| After the November rise, passed on in full | 7.00% | $3,500 | $3,992 |

The rise adds $125 a month on interest-only, or $1,500 a year, and about $100 a month on principal and interest. [Savings.com.au](https://www.savings.com.au/news/rba-november-2026-cash-rate-live-updates) estimates the five rises this year have added about $570 a month to the repayment on an average new owner-occupier loan of $731,000.

These figures are illustrations only. Your position depends on your rate, loan structure, offset balance, tax rate and actual rent. Interest on a loan used to earn rent is generally deductible, so the after-tax cost is lower than the headline figure, but the cash still has to leave your account each month.

## When the rise reaches your loan

Lenders set their own rates and are not required to follow the RBA. [Macquarie](https://www.macquarie.com.au/help/personal/home-loans/understanding-your-home-loan-interest-rates-and-fees/viewing-the-rba-interest-rate-decision.html) was first to respond, lifting its variable home loan reference rates by 0.25 points from 19 November 2026. After the September rise, all four major banks passed it on in full from 9 October, and you should expect a notice from your lender in the coming days.

Investor and interest-only loans are often priced above owner-occupier rates, so the rate you pay may already be well above 7%. The rise applies on top of whatever you pay now.

## What comes next

The statement dropped the September line about raising the cash rate further if needed. Instead, the Board said it "will continue to do what it considers necessary to bring inflation sustainably back to target" and that "monetary policy is well placed to respond to developments".

The final meeting of the year is [7 to 8 December](https://www.rba.gov.au/schedules-events/board-meeting-schedules.html). BetaShares' David Bassanese told the ABC that he expects a hold in December, with another rise in February 2027 his base case. EY's Cherelle Murphy expects the RBA to wait and see over summer. Neither is certain, and the October labour force figures on 24 November will matter.

## What this means for landlords

1. **Budget at 7.0% or your actual new rate.** When your lender's notice arrives, rework your monthly shortfall at the new rate and check it against your cash buffer.
2. **Check your loan's notice period and date.** Variable rates change on the date your lender sets, not on 4 November. Note it so the first higher direct debit is not a surprise.
3. **Compare your rate.** A full point and a quarter of rises makes a rate review worth the time. Ask your lender for a better rate or compare offers through a broker, allowing for discharge and application costs.
4. **Look at fixed expiry dates.** If a fixed period ends in the next six months, find out the revert rate now.
5. **Don't push rents to cover the rate.** Rent is set by what similar homes are letting for, not by your interest bill, and vacancies are rising. A good tenant on a fair rent is usually worth more than a few extra dollars a week and a vacancy.
6. **Keep records for tax.** Interest on a loan used to produce rent is generally deductible. Keep your lender's notices and statements, and see our guide to [rental property tax deductions](https://www.landlordweekly.com/articles/rental-property-tax-deductions).

## Frequently asked questions

### What is the RBA cash rate after the November 2026 decision?

The cash rate target is 4.85%, effective from 4 November 2026. The Monetary Policy Board raised it by 0.25 percentage points on 3 November. It is the highest cash rate since late 2008 and the fifth rise of 2026.

### Was the November 2026 decision unanimous?

No. Six members voted to raise the cash rate to 4.85% and three voted to hold it at 4.60%. Governor Michele Bullock said the members who favoured a pause gave more weight to cooling housing, rising unemployment and the lack of faster wage growth.

### How much does the November rise cost on a $600,000 investment loan?

If your lender passes it on in full, interest on a $600,000 interest-only loan rises by $125 a month, or $1,500 a year. On a 30-year principal and interest loan of the same size, the repayment rises by about $100 a month. Your figure depends on your rate, loan type and offset balance.

### When will banks pass on the November 2026 rate rise?

Each lender decides for itself. Macquarie said it will lift its variable home loan reference rates by 0.25 points from 19 November 2026. After the September rise, the big four banks passed it on in full from 9 October. Check the notice from your own lender for the date that applies to you.

### Will the RBA raise rates again in December 2026?

The Board did not repeat its September wording about raising the cash rate further if needed, and said it will continue to do what is necessary to return inflation to target. Several economists expect a hold at the 7 to 8 December meeting, with February 2027 seen as the next risk. Nothing is decided until the Board announces.


## Sources

- [RBA: Statement by the Monetary Policy Board, monetary policy decision, 3 November 2026](https://www.rba.gov.au/media-releases/2026/mr-26-30.html)
- [RBA: Statement on Monetary Policy, November 2026, Outlook](https://www.rba.gov.au/publications/smp/2026/nov/outlook.html)
- [RBA: Board meeting schedules 2026](https://www.rba.gov.au/schedules-events/board-meeting-schedules.html)
- [Macquarie: Understanding the RBA's cash rate decision](https://www.macquarie.com.au/help/personal/home-loans/understanding-your-home-loan-interest-rates-and-fees/viewing-the-rba-interest-rate-decision.html)
- [ABC News: RBA lifts interest rates to highest level in 18 years to try to dampen inflation (3 November 2026)](https://www.abc.net.au/news/2026-11-03/rba-lifts-interest-rates-november-2026-highest-rate-in-18-years/107340050)
- [SBS News: RBA's Cup Day call takes rates to 18-year high; board divided over decision (3 November 2026)](https://www.sbs.com.au/news/live-blog/rba-november-2026-interest-rates-decision-live/f6csn2n1w)
- [Savings.com.au: RBA November cash rate decision, live updates (3 November 2026)](https://www.savings.com.au/news/rba-november-2026-cash-rate-live-updates)
- [ABS: CPI rose 4.3% in the year to September 2026 (28 October 2026)](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026)

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*General information only, not financial, legal or tax advice. Source: Landlord Weekly, https://www.landlordweekly.com/articles/rba-raises-cash-rate-4-85-november-2026*