Inflation horror show means fifth 2026 rate rise almost inevitable
Borrowers have been spooked by a scary lift in inflation that has made an interest rate hike on Melbourne Cup Day a near certainty.
A fifth 0.25 percentage point rate hike would add another $114 to monthly repayments. (Image source: Maxx-Studio/Shutterstock.com + API Magazine)
The prospects of an imminent interest rate rise now appear almost certain, after inflation data released Wednesday (28 October) erred on the upside.
Financial markets are now pricing in an 85 per cent chance of the Reserve Bank of Australia (RBA) lifting the official cash rate next Tuesday (3 November).
The Consumer Price Index (CPI) rose 4.3 per cent, up from 4.0 per cent in the 12 months to August 2026.
Before the Australian Bureau of Statistic…
