{
  "id": 17908321,
  "title": "Australia’s central bank lifts rates to 18-year high, split vote points to pause ahead",
  "url": "https://urgent.news/2026/11/03/australias-central-bank-lifts-rates-to-18-year-high-split-vote-points",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-03T04:18:25.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/australias-central-bank-lifts-rates-to-18year-high-split-vote-points-to-pause-ahead-4993466"
  },
  "original_language": "en",
  "account": "Australia's central bank, the Reserve Bank of Australia (RBA), increased its cash rate to a 18-year high of 4.85% on Tuesday, marking its fifth hike of the year. The decision was made after a closer-than-expected vote among the nine board members, with three members preferring to pause further rate hikes. The RBA stated that it would continue to take measures necessary to bring inflation back to its target, but removed a reference to raising rates further if required.\n\nThe Australian dollar weakened by 0.3% to $0.6979, while three-year government bond futures fell 3 ticks to 95.14. Markets anticipate that the RBA will remain on hold in December following the split vote. Thirty out of 32 economists surveyed by Reuters had expected a rate hike, while markets believed there was an 88% chance of a move after strong third-quarter inflation data and hawkish remarks from policymakers overshadowed concerns about unemployment reaching a five-year high.\n\nThe RBA justified the rate increase, citing a revised inflation outlook and continuing upside risks. The bank's annual tightening of 125 basis points has significantly reversed the 75 basis points of easing from 2025, positioning Australia among the more hawkish central banks in developed markets. However, the RBA faces challenges as inflation remains stubborn while growth momentum begins to decelerate.\n\nKatherine Palmer, head of fixed income strategy at BlackRock Australia, believes that the full impact of this year's tightening has yet to permeate the economy and suggests that the RBA might hold steady while assessing incoming data and policy transmission. Marcel Theliant, head of Asia-Pacific at Capital Economics, agrees, stating that the RBA is likely done with rate hikes but may not loosen policy until the end of next year.\n\nAustralia's policymakers are concerned that rising oil prices could exacerbate broader price pressures and undermine inflation expectations. Inflation accelerated to a two-year high of 3.7% in the third quarter, following more than five years of inflation above the central bank's 2% to 3% target band. The aggressive rate hikes have been particularly impactful on the housing market, which is expected to experience its largest downturn in four decades, dampening household spending through negative wealth effects and affecting housing-related industries like real estate agencies and removal companies. Although Australia's unemployment rate has risen to a five-year high of 4.7%, the central bank still considers it to be relatively tight and a contributor to inflationary pressures. Despite the slowdown in economic growth, inflation concerns persist due to the ongoing investment boom in data centers, which continues to fuel demand in an economy constrained by limited housing supply.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "CNBC",
        "title": "Australia hikes rates to 18-year high to fight inflation",
        "url": "https://urgent.news/2026/11/03/australia-hikes-rates-to-18-year-high-to-fight-inflation",
        "published": "2026-11-03T03:33:47.000Z"
      },
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Australia’s central bank lifts rates to 18-year high of 4.85%",
        "url": "https://urgent.news/2026/11/03/australias-central-bank-lifts-rates-to-18-year-high-of-4-85",
        "published": "2026-11-03T04:08:06.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "Australia's central bank lifts rates to 18-year high, split vote points to pause ahead",
        "url": "https://urgent.news/2026/11/03/australias-central-bank-lifts-rates-to-18-year-high-split-vote-points-17922795",
        "published": "2026-11-03T06:01:43.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}