Central BanksMedium•3 November 2026•
1 min read
RBA Hikes Rates to 18-Year High as Banking Sector Leads Market Rally
Key Facts
1The Reserve Bank of Australia hiked interest rates to their highest level in 18 years.
2Banking sector shares led the gains in the Australian market following the rate decision.
The Reserve Bank of Australia (RBA) hiked interest rates to their highest level in 18 years on November 3, 2026. MarketScreener reported that banking sector shares led gains in the Australian market following the decision, as the rate increase is expected to benefit bank margins despite the broader tightening environment.
The rate decision follows Australian inflation data from October 28, 2026, which showed the annual Trimmed Mean CPI at 3.7%, exceeding the 3.6% forecast. Additionally, the monthly inflation rate rose by 0.8% on the same date, supporting the central bank's move to the current interest rate of 4.85%.