RBA lifts rates for the fifth time this year, to an 18-year high

The Reserve Bank raised the cash rate by 0.25 percentage points to 4.85% on Melbourne Cup Day, its fifth increase of 2026. The board split six votes to three, with three members preferring to hold at 4.60%. Governor Michele Bullock pointed to stubborn inflation, the Middle East conflict and rising oil prices, and left the door open to further hikes.