In short: The RBA’s cash rate has ranged from 17.5% in January 1990 to a record low of 0.10% in November 2020. After three cuts in 2025 took it to 3.60%, the RBA lifted it five times in 2026, reaching 4.85% on 3 November, the highest level since 2008. Your home loan rate sits above the cash rate and usually moves when it does.

17.5%. That was the RBA’s cash rate target in January 1990. If you had a mortgage back then, you remember it. If you didn’t, ask your parents.

By November 2020 it was 0.10%. After this week’s rise, it’s 4.85%. Here’s how we got here, and what it actually means for your repayments.

What is the cash rate?

The cash rate is the interest rate banks charge each other on overnight loans. The Reserve Bank of Australia sets a target for it, and that target is what the news means by “interest rates”. Lenders don’t have to follow it, but their variable home loan rates usually move the same way soon after.

Australia’s cash rate history at a glance

• January 1990: 17.0% to 17.5%, the highest in the RBA’s published cash rate table, which starts in 1990.

• March to September 2008: 7.25%, the peak before the global financial crisis.

• November 2020: 0.10%, the record low, set during COVID.

• 2025: three cuts, in February, May and August, took it from 4.35% to 3.60%.

• 2026: five rises, in February, March, May, September and November, took it to 4.85%.

What happened in 2026?

Inflation, mostly. The RBA lifted the cash rate by 0.25% in February, March, May and September, then again on 3 November. That’s 1.25% in a single year. The November call was close: six of the nine board members voted to raise and three wanted to hold.

What does a 0.25% rise mean for my repayments?

On a $600,000 loan over 30 years, going from 6.50% to 6.75% adds about $100 a month to principal and interest repayments.

Add up all five of this year’s rises and the same loan is about $485 a month dearer than it was in January (5.50% to 6.75%), assuming your lender passed every rise on in full.

Here’s what most people miss: lenders assess new loans at your rate plus at least 3%. So every 0.25% rise also trims what you can borrow, by roughly 2%. If you got pre-approval earlier in the year, check it still stands before you bid.

Does the history tell us where rates are going?

No. Nobody knows, including the banks. In November the RBA dropped its earlier line about raising rates further if needed, but that isn’t a promise either way. The next decision is on 8 December 2026.

What I’d do instead of guessing: check your budget still works if rates rise another 1%, keep a buffer in your offset, and make sure you’re not paying more than new customers. If you’re weighing up fixing, read my take on fixed vs variable rates. For practical steps, see how to protect yourself from rate rises.

Want your own numbers? Try our repayments calculator, or book a chat with Gav and I’ll check your rate against what’s out there.

Frequently asked questions

What is the highest the cash rate has been in Australia?

17.0% to 17.5% in January 1990, the top of the RBA’s published cash rate table.

What was the lowest cash rate in Australia?

0.10%, set in November 2020. It stayed there until the RBA started raising rates in May 2022.

What is the RBA cash rate now?

4.85%, effective 4 November 2026, after the RBA’s fifth rise of the year. The next decision is on 8 December 2026.

Last updated: 4 November 2026.

General information only. This article does not take into account your objectives, financial situation or needs, so consider whether it is appropriate for you and seek personal advice before acting. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd (formerly Vow Financial Pty Ltd) (ABN 66 138 789 161), Australian Credit Licence 390261.