RBA Hikes Rates in Close 6-3 Board Vote

The Reserve Bank of Australia lifted its cash rate in November 2026 by a narrow majority, with its governor signalling a pause to assess the effects.

Updated on Nov. 13, 2026 in Economic Indicators

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The Reserve Bank of Australia voted 6-3 to raise interest rates in November 2026. Governor Bullock has signalled a pause while the board assesses how the tightening is working through the economy.

Why it matters

The narrow split signals growing opposition to further increases within the board, and markets see limited scope for additional hikes. For Australians with variable-rate loans, the decision sets the near-term direction of borrowing costs.

The rate decision passed 6-3 on the RBA board, while the Australian dollar, though the worst performing G10 currency over six days to 5 November 2026, remains second-best year-to-date. Whether the AI-related sell-off intensifies or eases has not been determined.

The players

Reserve Bank of Australia

Australia's central bank, responsible for monetary policy and setting the cash rate that influences national borrowing costs.

Michele Bullock

Governor of the Reserve Bank of Australia, who has signalled a pause in rate increases to assess the effects of tightening.

The details

The board's decision came as the Australian dollar sold off from its September 2026 high during a six-day period of AI-related selling in financial markets. Governor Bullock has indicated the RBA will pause to assess the effects of tightening before deciding on any further moves.

September 2026: the Australian dollar reaches its most recent high before selling off.
November 2026: the RBA raises rates by a 6-3 board vote.
5 November 2026: the six-day AI selling period hitting the Australian dollar ends.

Market Dynamics

The narrow 6-3 vote and governor's pause signal place the decision within the RBA's ongoing cash rate tightening cycle, with the board now weighing whether further hikes are warranted. The currency's sell-off ties this move to broader global capital flows tied to AI-sector volatility.

Households with variable-rate mortgages may see repayments remain elevated while the RBA weighs whether to pause. The narrow board split suggests the rate outlook could shift at future meetings.

The takeaway

Watch how the RBA's next decisions unfold, since a narrow board split means the path of borrowing costs remains open. Households should review how sensitive their budgets are to further rate movements.