Five rate rises in 2026: the year in one chart
The cash rate started 2026 at 3.60%. After five rises and two holds it now sits at 4.85%, its highest level in 18 years according to ABC News.
Every decision this year
The Reserve Bank raised rates in February, March and May, held in June and August, then raised again in late September and on 3 November.
Source: Finspo RBA rate tracker; ABC News. Levels after each 0.25-point move.
| Start | 3.6% |
| 3 Feb | 3.85% |
| 17 Mar | 4.1% |
| 5 May | 4.35% |
| 16 Jun | 4.35% |
| 11 Aug | 4.35% |
| 29 Sep | 4.6% |
| 3 Nov | 4.85% |
Why the Reserve Bank keeps raising
The Reserve Bank's job is to keep inflation between 2% and 3%. With prices still rising faster than that, the board has lifted rates to cool spending across the economy. Higher rates make borrowing dearer, which slows demand for everything from cars to homes.
The pauses in June and August show the board was weighing whether earlier rises were working. Inflation kept running hot, so rises resumed in September and November. Further moves will depend on the next inflation figures.
Practical steps right now
- Renting: keep a record of your current rent and lease end date, and compare similar rooms a month before renewal.
- Owning: work out what one more 0.25-point rise would add to your repayments, and plan for it.
- Thinking of sharing? A room in a shared home spreads rent and bills across several people, which cushions any rise.
- Listing a room? Clear photos, a fair price and bills spelled out help it fill quickly.
What it means if you rent
- Rents aren't set by the cash rate, but higher holding costs can show up at lease renewal.
- Renters are near their limit, which is already slowing rent growth.
- Sharing is still the simplest way to cut housing costs.
What it means if you own
Each 0.25-point rise adds to repayments on a variable loan. A spare room can bring in steady income while you stay put. Check tax rules and any lender or strata conditions first.
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- Finspo: RBA interest rate tracker
- ABC News: RBA lifts interest rates to highest level in 18 years (3 Nov 2026)
- Reserve Bank of Australia
Figures are from the sources above at the time of writing. This article is general information, not financial or legal advice.