Business Confidence Rises to 81.7 Amid Rate Hike

Roy Morgan's October survey shows its biggest monthly gain this year as the Reserve Bank lifts the cash rate to 4.85%.

Updated on Nov. 10, 2026 in Economic Indicators

Business Confidence Rises to 81.7 Amid Rate Hike

Live Poll

Do you expect the Australian economy to get better over the next year?

Roy Morgan Business Confidence rose 5.2 points to 81.7 in October 2026, its highest level since March. The gain came as the Reserve Bank of Australia raised the cash rate to 4.85% in early November.

Why it matters

The rise reflects greater optimism among businesses about their prospects and the economy over the next year and five years. Inflation remains above the Reserve Bank's 2-3% target range, at 4.3% for the 12 months to September 2026, leaving monetary policy tight.

Roy Morgan's survey recorded 81.7 for October 2026, a 5.2-point rise from September and its highest level since March. Of the businesses surveyed, 48.1% said the next 12 months is a bad time to invest in growing the business, while 30% said it is a good time.

The players

Roy Morgan

Roy Morgan is an Australian research company that publishes monthly surveys of business and consumer sentiment across the country.

Reserve Bank of Australia

The Reserve Bank of Australia is the country's central bank, responsible for setting the cash rate and managing monetary policy to keep inflation within its target range.

The details

Business Confidence is measured through surveyed expectations about financial prospects, economic conditions and investment timing, and is reported nationally, by state and by industry against a neutral level of 100. Mining recorded the lowest industry score at 49.1, while Victoria led the states at 89 and South Australia was lowest at 73.2.

September 2026: Reserve Bank raises the cash rate by 0.25 percentage points to 4.6%.
October 2026: Business Confidence rises 5.2 points to 81.7.
Early November 2026: Reserve Bank raises the cash rate by 0.2 percentage points to 4.85%.
Later in November 2026: Victorian State Election is scheduled.
Early December 2026: Next Reserve Bank interest rate meeting is due.

Economic Indicators in Context

The Reserve Bank's 2-3% inflation target range remains the benchmark against which the November increase to 4.85% is measured. With inflation at 4.3% for the 12 months to September 2026, the rate rises show the central bank still tightening policy to bring prices back toward that range.

With a 48.1% share of businesses saying the next 12 months is a bad time to invest in growth, households may see slower hiring and fewer expansion plans. The 4.85% cash rate also feeds through to variable mortgage and loan repayments.

The takeaway

Higher business optimism sits alongside a cash rate at 4.85% and inflation above target, so the survey's gains may be tested by the cost of borrowing. Watching the December rate decision will show whether confidence holds.

What happens next

The next Reserve Bank of Australia interest rate meeting is due in early December 2026, and the Victorian State Election is scheduled for later in November 2026.