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Chalmers flags budget cuts to fight inflation as interest rates hit 4.85 per cent
smh.com.au/politics/federal/rba-raises-interest-rates-to-18-year-high-20261103-p61av6.html
Key FactsRBA raises cash rate to 4.85 per cent
2 days ago · Reading time: ~45 sec.
Summary created with AI assistance · Source: abc.net.au
Summary created with AI assistance · Source: abc.net.au
- The 0.25-percentage-point increase was the fifth rate rise in 2026; the cash rate was last this high in late 2008.
- Six board members backed the increase, while three voted to keep the target at 4.60 per cent.
- The RBA expects inflation to remain high for much of 2027 and not fall below 3 per cent until late that year.
- The unemployment rate is projected to average 5.1 per cent in the December 2028 quarter, compared with an August forecast of 4.8 per cent.
“We are not looking to tip the economy into recession if we can avoid it. But we do need to get inflation down, and we do have excess demand at the moment, so that is the key.”— Michele Bullock, governor of the Reserve Bank of Australia, said this at a press conference in response to a question about whether further rate rises could push the Australian economy into recession.
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