The Reserve Bank announced on 3 November 2026 that it will lift the cash rate target by 25 basis points, from 4.60% to 4.85%, in its November monetary policy decision. The RBA cash rate table lists the new target as effective from 4 November 2026, so 4.60% is still the target in effect on the day of the announcement. Neither figure is a car loan rate. What the RBA rate rise changes for you depends on whether you already have a fixed loan, already have a variable loan or are still comparing quotes.
The November 2026 RBA rate rise at a glance
- Target in effect on 3 November: 4.60%.
- Announced new target: 4.85%, effective 4 November 2026.
- Change: 25 basis points, or 0.25 percentage points.
- Vote: six Board members voted to increase the target and three voted to leave it at 4.60%, according to the decision statement.
- This year: the cash rate table shows increases effective in February, March, May, September and now November. That takes the target from 3.60% at the start of 2026 to 4.85%, a total of 1.25 percentage points (our arithmetic from the table).
- Next update: 2:30pm AEDT on 8 December 2026, according to the RBA cash rate overview.
Why the Board lifted the cash rate to 4.85%
In its statement, the Board said underlying inflation remains broadly based, capacity pressures appear a little tighter than previously estimated and there are indications that higher fuel prices are being passed through to other goods and services. It said inflation is now expected to remain above 3 per cent for the coming year. The Board also said it "will be attentive to the data" in guiding its decisions. That is not a commitment to another rise, or a signal about December.
The RBA's November Statement on Monetary Policy summary says the economy is expected to slow and the unemployment rate is expected to rise over the next few years. These are forecasts, not certainties, but they are a reason to leave room in a household budget.
Existing fixed car loan: what to check
Moneysmart's car loan guide explains that with a fixed interest rate, "the interest rate and your car loan repayments won't change". The RBA announcement does not rewrite the agreed rate in a fixed contract you already hold.
- Confirm the rate type in your contract or latest statement. If you cannot tell, ask your lender.
- Keep paying the agreed repayment unless your lender gives you different written instructions.
- Find the early repayment clause before you think about refinancing or paying out. Moneysmart's personal loan guide notes that fixed rate loans may charge a fee if you repay early. Our guide to paying out a car loan early explains payout figures.
Existing variable car loan: what to check
Moneysmart's car loan guide explains that variable repayments depend on changes to the lender's own variable rate. The RBA sets the cash rate target. Your lender decides whether its own variable rate changes, by how much and from when. Do not assume your rate rises by exactly 0.25 percentage points, or that any change starts on 4 November.
- Watch for a notice from your lender that states the new rate, the new repayment and the date it applies.
- Compare that notice with your current statement, and keep both.
- Check whether your budget could still cover a higher variable repayment, as suggested in Moneysmart's personal loan guide. You can run that test in our car loan calculator using your own balance and term.
New borrower or open quote: what to check
No car loan rate automatically becomes 4.85% or rises by 0.25 percentage points. Moneysmart's personal loan guide says the rate you get may differ from the advertised rate, and that lenders may look at your credit score, income, expenses and savings when they set it. Car loan pricing is set by each lender, as we explain in why car loan rates don't follow the cash rate.
- Ask the lender or broker, in writing, whether the quoted rate, fees and repayment are still available for your application.
- Ask when the quote expires and whether the quoted rate is locked through settlement. Confirm which terms apply if funding occurs after 4 November. Our guide to car loan settlement after approval covers the steps between approval and funding.
- Compare offers on the comparison rate for the same loan amount and term, as Moneysmart recommends. Our explainer on comparison rate vs interest rate shows why the headline rate alone can mislead.
- Look at the whole offer, including fees, any balloon payment and early payout terms. You can review current car loan rates and lender profiles to see how offers are structured.
Our checklist for the RBA November 2026 meeting covered what to check before the announcement. The checks above pick up from the result.
Keep a dated record of what you checked
Write down the date, the document you read and what it says: your rate type, current rate, comparison rate, repayment, any early repayment fee and, for a quote, its expiry date. If a lender sends a notice or revised quote, keep it with the earlier version. That record comes from your own documents.
If you are weighing a switch, our refinance page explains the process. Compare the full cost of the new loan, not just its rate. If you are ready to compare, start with our car loans page, or personal loans for a private sale or older vehicle.
