Reserve Bank to Consider November Rate Hike
Deputy Governor Andrew Hauser signalled a potential increase due to rising oil costs and inflation trends.
Updated on Oct. 20, 2026 in Inflation
Live Poll
Do you expect interest rates to rise further in the coming months?
Reserve Bank of Australia Deputy Governor Andrew Hauser has indicated that the central bank may lift interest rates in November 2026. The shift follows a worsened inflation outlook and global geopolitical instability.
Why it matters
Higher oil prices and persistent technology costs are outpacing previous official projections from August. The Reserve Bank of Australia is responding to these developments to manage domestic price pressures.
Oil prices are currently one third higher than the levels assumed in the Reserve Bank of Australia's August monetary policy statement. The consumer price index is also being pressured by elevated prices for artificial intelligence and technology.
The players
Andrew Hauser
He serves as the Deputy Governor of the Reserve Bank of Australia.
Reserve Bank of Australia
This is the central bank of Australia responsible for conducting monetary policy and maintaining financial stability.
The details
Speaking in Sydney, Andrew Hauser noted that the inflation outlook is notably worse than expected three months ago, partly due to the situation in the Middle East. The central bank continues to monitor these factors as it prepares for its upcoming policy review.
Timeline
August 2026: Reserve Bank of Australia issued monetary policy statement
21 October 2026: Andrew Hauser spoke at Citi investment conference
November 2026: Potential interest rate rise
Macro View
This potential rate hike marks a departure from the inflation projections established in the Reserve Bank of Australia's August monetary policy statement. The shift reflects a changing economic environment that diverges from the assumptions held by the bank just three months ago.
If the central bank proceeds with a rate increase in November, households may face higher interest costs on variable-rate loans and mortgages. The move is designed to curb inflation, which could impact overall cost-of-living expenses for Australian families.
The takeaway
Rising global oil prices and persistent technology costs are significantly influencing domestic economic policy in Australia. Borrowers should review their financial budgets in anticipation of potential adjustments to national interest rates in November.
Further reading
For more background on current price trends, visit the Inflation section.
Live Poll
Do you expect interest rates to rise further in the coming months?
