Australia’s central bank raised its interest rate by 0.25 percentage points to 4.85 percent on Tuesday, taking it to its highest level in 18 years. The Reserve Bank of Australia (RBA) made the decision after concluding a two-day monetary policy meeting, marking the fifth rate increase it has announced in 2026.
Fifth increase this year
The latest rise follows earlier increases in February, March, May and September. Together, the five decisions have lifted the interest rate to 4.85 percent. The RBA’s latest move added a quarter of a percentage point to the rate, continuing a sequence of increases made at several points during the year.
The decision followed the central bank’s two-day policy meeting, which concluded on Tuesday. The increase puts the rate at a level not seen for 18 years. The available information does not specify the date of the meeting or provide further detail about the RBA’s discussion before it announced the decision.
Rate reaches its highest point in 18 years
The 4.85 percent rate is the highest recorded in 18 years, according to reports on the decision. The move is the latest change in the RBA’s monetary policy during 2026, with increases recorded in February, March, May and September before Tuesday’s announcement.
The five increases were not described as consecutive monthly rises: the reported months show that the central bank made changes at different points across the year. Tuesday’s increase was 0.25 percentage points, bringing the rate to 4.85 percent. The previous rate can be calculated as 4.60 percent, based on the size of the increase and the new level.
Decision follows two-day policy meeting
The RBA announced the increase after completing its two-day monetary policy meeting. The reported information confirms the size of the increase, the new rate and the sequence of earlier moves, but does not state the reasons the bank gave for its decision. It also does not provide details of any accompanying statement or comments from policymakers.
The announcement leaves the rate at its highest level in 18 years and adds to the five increases made by the central bank during 2026. The earlier moves came in February, March, May and September, with Tuesday’s decision completing the year’s reported sequence of hikes so far.
