RBA Raises Interest Rates to 4.85% as Inflation Pressures Continue
The Reserve Bank of Australia (RBA) has today increased the official cash rate by 0.25 percentage points to 4.85%, taking interest rates to their highest level since the global financial crisis.
The decision comes as inflation continues to put pressure on the Australian economy, with the RBA concerned that price increases are proving more persistent than previously expected.
Why has the RBA increased rates?
According to the RBA, the outlook for inflation has deteriorated, with rising costs across a range of goods and services continuing to affect households and businesses.
The Bank now expects inflation to remain above its target range of 2–3% for longer than previously forecast, with a return to the upper end of that range not expected until late 2027.
By increasing interest rates, the RBA is aiming to slow spending and ease inflationary pressures over time.
What does this mean for WA's property market?
For Perth homeowners with variable-rate mortgages, the latest increase could mean higher repayments if lenders pass on the rise.
For buyers and investors, higher borrowing costs may affect purchasing power and investment decisions, particularly as Perth's property market adjusts following several years of strong growth.
While higher interest rates can help ease demand in the property market, housing affordability remains a significant challenge across Western Australia, with the availability and cost of housing continuing to be important considerations.
Looking ahead
The RBA's latest decision highlights the ongoing challenge of managing inflation while balancing the financial pressures facing Australian households and businesses.
For those buying, selling or investing in WA property, keeping an eye on interest rates and broader market conditions remains important as we move towards the end of 2026.
Source: Reserve Bank of Australia – Monetary Policy Decision, 3 November 2026
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