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Aussie Shares Drop Ahead of Interest Rates Decision
Markets priced in an 88% chance of another RBA hike after inflation hit 4.3%, adding pressure on borrowers and retailers.
- The Reserve Bank of Australia meets today, Tuesday, November 3, 2026, with financial markets pricing an 88 per cent probability of a fifth interest rate hike this year, lifting the cash rate to 4.85 per cent.
- According to the Australian Bureau of Statistics, September headline inflation jumped to 4.3 per cent, driven by a 9.4 per cent monthly surge in automotive fuel prices and a 5.2 per cent annual increase in housing costs.
- With another hike expected to add $456 monthly to repayments for a $600,000 mortgage, household budgets face significant strain amid political debates over the government's fiscal role in the cost-of-living crisis.
- Treasurer Jim Chalmers defends fiscal settings as playing "a helpful role," yet Opposition Leader Angus Taylor contends a government "spending addiction" is fueling price pressures, forcing the central bank's aggressive tightening.
- Economists warn the Reserve Bank's strategy to curb inflation risks pushing the economy into a recession, as officials signal rates may remain elevated well into 2027 to ensure price growth returns to the 2–3 per cent target.
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LO and SBAB's chief economists disagree about the interest rate: "I don't think they should do it"
·Gothenburg, Sweden
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Coverage Details
Total News Sources50
Leaning Left7Leaning Right6Center11Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 29%
C 46%
R 25%
Factuality
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