Australia's Central Bank Lifts Rates to 4.85%, an 18-Year High: Learn cash rate, unanimous and pass on

News date: 3 November 2026 (Australia) | English level: B1–B2 | Topic: World news, finance English

On 3 November, the Reserve Bank of Australia (RBA) raised rates by 0.25 percentage points, lifting the cash rate from 4.60% to 4.85%, its highest level since 2008. If you are on a working holiday or studying in Australia, or getting ready to go, this news is closely tied to your rent and living costs.

Finance news is full of words like cash rate, percentage point and pass on. They can be confusing the first time, but they are used in very fixed ways. This lesson uses an original, rewritten English passage to help you understand the RBA rate rise and learn 10 words and sentence patterns you can use at work and in daily life.

Want to know what markets expected before the decision? Start with our background lesson, Will Australia raise rates for a fifth time?

Read it once without looking at the summary and try to find three key points: What did the rate change from and to? How did the board vote? What does it mean for households with a mortgage?

English Level: Intermediate (B1–B2) | Topic: Economy, Australia

Australia's Central Bank Raises Rates to an 18-Year High

On 3 November, the Reserve Bank of Australia (RBA) raised its cash rate by 0.25 percentage points, from 4.60% to 4.85%. According to ABC News, it was the bank's fifth increase this year and took the rate to its highest level since 2008. The decision was not unanimous: six board members voted for the hike, while three wanted to keep the rate unchanged.

The RBA said inflation remains elevated and is broadly based, which means prices are rising across many parts of the economy. It pointed to higher fuel and other commodity prices linked to the conflict in the Middle East, as well as fast-rising prices for technology goods. The bank now expects inflation to stay above 3% for the coming year and not to reach the top of its 2–3% target range until late 2027.

For households, the hike means bigger mortgage bills. Macquarie was the first lender to pass on the 0.25 percentage point increase, effective 19 November. Canstar, a comparison site, estimated that someone with a $600,000 mortgage will now pay about $456 more each month than at the start of the year.

The decision also sparked a political debate. Treasurer Jim Chalmers said government budgets were not what was pushing inflation higher, while Opposition Leader Angus Taylor argued that the government was spending too much. The RBA's next meeting will be held on 7–8 December.

The passage above is an original learning text based on the RBA's statement and reporting by ABC News. It is not a word-for-word copy of any news report. All amounts are in Australian dollars.

On 3 November, Australia's central bank, the Reserve Bank of Australia (RBA), put its main interest rate up by 0.25 percentage points, from 4.60% to 4.85%. ABC News said this was the fifth rise this year, and the rate is now higher than at any time since 2008. Not everyone on the board agreed: six members wanted the rise, and three wanted to leave the rate where it was.

The RBA said prices are still rising too fast, and not just in one area but across much of the economy. It said the conflict in the Middle East has pushed up the price of fuel and other raw materials, and that prices for technology products are also going up quickly. The bank now thinks inflation will stay above 3% for the next year and won't come down to the top of its 2–3% target range until late 2027.

For families, the rise means paying more on their home loans. Macquarie was the first lender to add the 0.25 percentage point rise to its customers' loans, starting on 19 November. The comparison website Canstar worked out that a person with a $600,000 home loan now pays about $456 more a month than at the beginning of the year.

The decision also started an argument between politicians. Treasurer Jim Chalmers said government spending was not the reason inflation was rising, but Opposition Leader Angus Taylor said the government was spending too much. The RBA will meet again on 7–8 December.

1. cash rate (n.) the Reserve Bank of Australia's main policy interest rate

In the news: the RBA raised its cash rate to 4.85%

Example: My friend in Brisbane says his rent went up after the cash rate rose again.
After another rise in the central bank's rate, my Brisbane friend's landlord charged him more rent.

2. raise (v.) to increase or lift something (it needs an object)

In the news: raised its cash rate by 0.25 percentage points

Example: Our company raised salaries by 3% this year.
This year our company increased everyone's pay by 3%.

3. percentage point (n.) the unit for the simple difference between two percentages

In the news: by 0.25 percentage points (= 25 basis points; Taiwanese financial news calls 0.25 percentage points “1 碼”, one “yard”)

Example: My TOEIC listening accuracy went up by 10 percentage points.
For example, my correct answers in TOEIC listening went from 70% to 80%.

4. unanimous (adj.) agreed by everyone in a group

In the news: The decision was not unanimous.

Example: The team made a unanimous decision to hold the meeting online.
Everyone on the team agreed to move the meeting online.

5. hike (n./v.) a rise in prices or interest rates, or to raise them

In the news: voted for the hike

Example: The MRT fare hike surprised many students.
Many students did not expect metro (MRT) ticket prices to go up.

6. inflation (n.) a general rise in prices over time

In the news: inflation remains elevated

Example: Because of inflation, my lunch now costs NT$150 instead of NT$120.
Prices have gone up, so the same lunch now costs 150 New Taiwan dollars instead of 120.

7. mortgage (n.) a loan used to buy a home

In the news: bigger mortgage bills

Example: My parents finally paid off their mortgage last year.
Last year my parents finished repaying their home loan.

8. lender (n.) a bank or company that lends money

In the news: the first lender to pass on the increase

Example: Compare different lenders before you apply for a student loan.
Look at what several banks or loan companies offer before applying for a student loan.

9. pass on (to) (phr. v.) to make someone else pay for a cost or price rise

In the news: pass on the 0.25 percentage point increase

Example: The café passed on the higher milk prices to customers.
The café raised its prices because milk became more expensive.

10. spark (v.) to cause something to start, such as a debate or reaction

In the news: sparked a political debate

Example: His post about working holidays sparked a long discussion online.
Lots of people started commenting after he posted about working holidays.

Pattern 1: take … to its highest level since + point in time (the highest since …)

From the passage: It took the rate to its highest level since 2008.

How it works: Use this to say a number has reached its highest point since a certain year. It is common in news and presentations. The opposite is lowest level since.

Try it: Rising rent took our living costs to their highest level since we moved to Sydney.
Because rent went up, our living costs are now higher than at any time since we moved to Sydney.

Pattern 2: expect + object + not to V … until + time (expect it to happen only at a later time)

From the passage: The bank expects inflation to stay above 3% for the coming year and not to reach the top of its target range until late 2027.

How it works: not … until means “only at that time, not before”, and it stresses that something will happen later than you might hope. With expect, put not before to: expect something not to do.

Try it: I expect my English to improve quickly, but not to reach IELTS 7 until next year.
My English should get better fast, but I probably won't score IELTS 7 before next year.

Pattern 3: A said …, while B argued … (A said one thing, but B disagreed)

From the passage: Jim Chalmers said …, while Angus Taylor argued that the government was spending too much.

How it works: Use while to link two different opinions and show the contrast. It helps you present both sides fairly in news summaries and meeting notes.

Try it: My manager said the plan was ready, while the designer argued it needed more time.
My manager thought the plan was finished, but the designer said it needed more work.

Scenario: Amy, who is getting ready for a working holiday in Australia, video-calls her friend Ben, who already lives in Melbourne.

English Conversation

• Amy: I saw the news. The RBA raised the cash rate again?
• Ben: Yes, to 4.85%. It's the highest level since 2008.
• Amy: Does that affect people like us? We don't have a mortgage.
• Ben: Not directly, but some landlords pass on higher costs to tenants.
• Amy: So rent might go up. That's not great news.
• Ben: Right. Inflation is still high, so budget carefully when you arrive.
• Amy: Good idea. I'll compare rooms before I sign anything.
• Ben: Smart. And don't forget to check your pay rate, too.

Key takeaways

• Amy turns a statement into a question with rising intonation: The RBA raised the cash rate again?
• Not directly, but … is a useful way to say something has an indirect effect.
• Ben uses pass on higher costs to tenants to explain how a rate rise can reach renters.
• budget carefully (budget as a verb) means plan your spending with care.
• pay rate is the amount you earn per hour, something worth checking before you start a job.

Try not to look back at the article. Choose your answer and confirm it to see the explanation.

Understanding the news is only the first step. Being able to discuss it and share your own views in English is the skill you will actually use. Ambitious Learner's one-on-one online English lessons can plan practice topics around your level and goals, such as working holiday job interviews, talking to landlords or workplace meetings.

If you want an intensive boost before you leave, you can also explore our Philippines language school programs, or read up on how to prepare for an Australian working holiday. Results vary from person to person. Feel free to book a consultation through our LINE account to find the pace that suits you.

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• Reserve Bank of Australia: Statement by the Monetary Policy Board: Monetary Policy Decision (2026-30) | 3 Nov 2026
• ABC News: RBA hikes cash rate to 18-year high of 4.85 per cent — as it happened | 3 Nov 2026
• ABC News: Federal politics live | 4 Nov 2026
• Reserve Bank of Australia: Board meeting schedules | Next meeting: 7–8 December

Facts checked on 5 November 2026. The English reading passage, example sentences, dialogue and quiz are original teaching content created by Ambitious Learner and are not word-for-word news text. The extra mortgage cost is an estimate by Canstar; the actual impact depends on each loan's terms and personal circumstances.