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Westpac IQ

RBA hikes cash rate to new high of 4.85%, a December pause likely

November 03 2026 • 5 mins

RBA lifts cash rate 25bps to 4.85% in split vote, citing “broadly based” domestic inflation pressures, Middle East conflict and AI boom. Indications are for a pause to assess in December. While risks are still skewed up, we stick with our existing base case that this is likely the peak of the cycle.

Luci Ellis

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