RBA expected to raise interest rate to 4.85%
The Reserve Bank of Australia (RBA) will announce its monetary policy decision on Tuesday and is widely anticipated to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.85% from 4.6%.
The Reserve Bank of Australia (RBA) is set to raise the Official Cash Rate (OCR) by 25 basis points to 4.85%, according to expectations. This will be the fifth rate hike in 2026 and the OCR will reach an 18-year high. The decision will be made on Tuesday, announced at 03:30 GMT, with Governor Michele Bullock delivering a press conference at 04:30 GMT.
Inflationary pressures are driving the rate hike, with Australia's annual inflation rate at 3.9% in Q3, above the 2–3% target. RBA Governor Bullock hinted at the need for further hikes to prevent inflation from becoming embedded in expectations. The AUD is struggling to stay above the 0.7000 mark against the USD, and the RBA's decision and Governor Bullock's remarks are expected to influence the currency's near-term performance.
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