The Reserve Bank of Australia raised the cash rate to 4.85%, an 18-year high, in a split board decision.

What it means

The Reserve Bank of Australia lifted its official cash rate target by a quarter of a percentage point to 4.85%, the highest level since late 2008 — the last time rates were this high was around the global financial crisis. The decision was not unanimous: the monetary policy board split 6–3, with three members preferring to hold rates steady, which signals genuine internal disagreement about whether inflation is being brought under control fast enough. Governor Michele Bullock framed the move as accepting 'pain now' to avoid worse later, and the board dropped language that had pointed toward a pause. In practical terms it means higher repayments for variable-rate mortgage holders and tighter credit for households and businesses.

Accuracy & sourcesSourced

The claim rests on a named primary source — the RBA's post-meeting statement and Bullock's press conference — and the AFR's headline numbers (25bp, 4.85%, 18-year high, split decision) are corroborated across Reuters, ABC and Guardian coverage of the same announcement. The one detail worth flagging is that the split is reported as 6–3, so the 'split board' framing is accurate but the majority was still clear.

How new