Cash rate
The RBA cash rate target
The cash rate target is the RBA’s operational target for the overnight interest rate. It is a benchmark, not the mortgage rate offered by a particular lender.
Current target
4.85%
Effective 2026-11-04 following the latest verified RBA decision. The next decision is on 8 December 2026.
Last five years
Source: Reserve Bank of Australia. Full history since 1990.
Where the cycle is now
At its latest decision on 3 November 2026, the RBA raised the target to 4.85%. It was the second consecutive rise. At 4.85%, the cash rate target was at its highest level since 4 November 2008. A year earlier it was 3.60%, so the target was up 1.25 percentage points over twelve months.
For what markets expect next, see market pricing and when rates might fall.
Recent official target changes
What the cash rate means for you
Variable-rate mortgages usually move when the cash rate moves, typically a week or two after a decision once your lender announces whether it will pass the change on. Estimate the effect with the rate change calculator.
Fixed-rate mortgages do not change until the fixed period ends. New fixed rates are priced from longer-term expectations, so they often move before the RBA does.
Savings and term deposits tend to earn more when the cash rate rises and less when it falls, although banks also set these rates themselves.
Source and terminology
The RBA’s Monetary Policy Board announces its decision at 2:30pm Sydney time after each of its eight scheduled meetings a year (see meeting dates). A change in the target generally takes effect the following day.
Basis points describe a percentage-point movement: 25 basis points equals 0.25 percentage points.
Common questions
What is the RBA cash rate?
The cash rate is the interest rate on overnight loans between banks. The Reserve Bank of Australia sets a target for it, and that target is the main tool of Australian monetary policy. Lenders use it as a benchmark when setting mortgage and deposit rates.
What is the cash rate today?
The RBA cash rate target is 4.85%, effective 4 November 2026.
When is the next cash rate decision?
The next decision is due on 8 December 2026 at 2:30 pm Sydney time.
Is the cash rate the same as my mortgage rate?
No. Your mortgage rate is set by your lender and is usually well above the cash rate, because it also covers the lender’s funding costs, risk and margin. Variable mortgage rates tend to move when the cash rate moves, but lenders decide whether and when to pass on a change.