Unions Urge RBA to Hold Rates Steady
Australian unions ask the Reserve Bank to pause rate rises as households face mounting living costs ahead of a decision on 3 November.
Updated on Nov. 2, 2026 in Inflation
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Australian unions have urged the Reserve Bank of Australia to keep interest rates on hold. Financial markets expect an 80 per cent chance of a fifth rate hike at the RBA's decision on 3 November 2026.
Why it matters
A 25 basis point hike would lift the cash rate to 4.85 per cent, adding about $92 a month to repayments on a $600,000 mortgage with 25 years remaining. Unions argue workers cannot absorb further rises as household costs climb.
Supermarket basket prices rose 7 per cent between March and June, and markets price an 80 per cent chance of a fifth RBA hike, which would lift the cash rate to 4.85 per cent. Whether the central bank will act on these figures is not yet known.
The players
Reserve Bank of Australia
Australia's central bank, responsible for setting the cash rate and managing inflation through monetary policy.
Australian Council of Trade Unions
The peak body for Australian unions, which has urged the RBA to hold rates to protect workers' household budgets.
The details
Unions including the ACTU argue households are squeezed by rising living costs, while mortgage brokers say the RBA has too few tools to manage inflation. The debate contrasts with New Zealand, where the central bank's 2024 hikes pushed the economy into recession and unemployment rose higher than in Australia.
Timeline
February 2026: Rate rises began.
March to June 2026: Supermarket basket prices rose 7 per cent.
3 November 2026: The RBA announces its monetary policy decision at 2:30 pm AEDT.
Macro View
Australia is weighing a fifth rate hike against New Zealand's 2024 experience, when aggressive RBNZ tightening pushed the economy into recession. Inflation in the two countries is stuck at broadly similar levels, but New Zealand's unemployment rose higher than Australia's.
For a borrower with a $600,000 loan and 25 years remaining, a 25 basis point hike adds about $92 a month to repayments. Households already face a cumulative increase of $456 a month since rate rises began in February.
The takeaway
Rate decisions weigh heavily on mortgage holders, so households should check how a further rise would affect their repayments before the announcement. Comparing monthly figures against the current budget can help plan for the possible outcome.
What happens next
The Reserve Bank of Australia announces its monetary policy decision at 2:30 pm AEDT on 3 November 2026.
Further reading
Explore more on Inflation trends affecting Australian households.
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