{"id":649505,"date":"2026-11-03T06:46:20","date_gmt":"2026-11-03T06:46:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/649505\/"},"modified":"2026-11-03T06:46:20","modified_gmt":"2026-11-03T06:46:20","slug":"reserve-bank-of-australia-raises-cash-rate-to-4-85-as-inflation-stays-high","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/649505\/","title":{"rendered":"Reserve Bank of Australia raises cash rate to 4.85% as inflation stays high"},"content":{"rendered":"<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cThe inflation outlook has also been revised materially higher in the updated staff forecasts.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cThis partly reflects higher fuel and other commodity prices affected by the conflict in the Middle East.\u201d<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Domestic capacity pressures were also judged to have been a little tighter than earlier thought.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Artificial intelligence-related investment was driving rapid growth in prices for technology-related goods and inflation in many goods and services remained high.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Many firms were experiencing cost pressures and were either increasing the prices of their goods and services in response or looking to do so.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cInflation is now forecast to remain elevated through much of 2027 and is not expected to reach the top of the 2\u20133% target range until late 2027, around three quarters later than previously forecast,\u201d the RBA said.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">\u201cThis presents upside risks to inflation expectations; some measures are assessed to have risen lately.\u201d<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">The increases in the cash rate target since the beginning of the year have tightened financial conditions, the bank said.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">The RBA\u2019s move contrasts with the Reserve Bank of New Zealand\u2019s decision on October 28, when it left the Official Cash Rate (OCR) unchanged at 2.75%.<\/p>\n<p class=\"VFgYVkWVN\" style=\"display:none\">Likewise, the decision was not unanimous \u2013 the vote was four to three to hold the OCR at 2.75%.<\/p>\n<p>Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our <a href=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\">Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThe inflation outlook has also been revised materially higher in the updated staff forecasts. \u201cThis partly reflects higher&hellip;\n","protected":false},"author":2,"featured_media":649506,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[318171,806,85,1643,138,6932,219,84864,2959,67286,1943,111,139,69,1118,227910,423,13420,11596,19257,10665,5034,22858,8225,61],"class_list":["post-649505","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-318171","tag-as","tag-australia","tag-bank","tag-business","tag-cash","tag-economy","tag-elevated","tag-high","tag-hiked","tag-inflation","tag-new-zealand","tag-newzealand","tag-nz","tag-of","tag-percentage","tag-point","tag-quarter","tag-raises","tag-rate","tag-reserve","tag-response","tag-stays","tag-target","tag-to"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/649505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=649505"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/649505\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/649506"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=649505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=649505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=649505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}