{"id":74048,"date":"2026-11-03T00:08:13","date_gmt":"2026-11-03T04:08:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/rba-hikes-cash-rate-to-4-85-amid-stubborn-inflation-taiwan-dollar-hits-18-month-low\/74048\/"},"modified":"2026-11-03T00:08:13","modified_gmt":"2026-11-03T04:08:13","slug":"rba-hikes-cash-rate-to-4-85-amid-stubborn-inflation-taiwan-dollar-hits-18-month-low","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/rba-hikes-cash-rate-to-4-85-amid-stubborn-inflation-taiwan-dollar-hits-18-month-low\/74048\/","title":{"rendered":"RBA Hikes Cash Rate to 4.85% Amid Stubborn Inflation; Taiwan Dollar Hits 18-Month Low"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Reserve Bank of Australia (RBA) raised the cash rate by 25 basis points to 4.85%<\/strong>, the highest level since 2008, following a split <strong>6-3 vote<\/strong>.<\/li>\n<li><strong>Taiwan Dollar (TWD) fell to its lowest level since April 2025<\/strong>, depreciating past <strong>32.3 per US dollar<\/strong> due to record foreign equity outflows and semiconductor stock volatility.<\/li>\n<li><strong>JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>) lowered its price target for Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) to $355 from $360<\/strong>, despite other analysts like Monness raising targets ahead of earnings.<\/li>\n<li><strong>Chinese 1-month Treasury bills were auctioned at a 0.7957% yield<\/strong>, reflecting ongoing liquidity adjustments in the mainland&#39;s money markets.<\/li>\n<li><strong>Michigan political drama intensified<\/strong> as Representative Haley Stevens revoked her endorsement of Democratic Senate nominee Abdul El-Sayed, backing his GOP rival Mike Rogers instead.<\/li>\n<\/ul>\n<h2>RBA Delivers Fifth Rate Hike of 2026<\/h2>\n<p>The <strong>Reserve Bank of Australia<\/strong> increased its official cash rate to <strong>4.85%<\/strong> on Tuesday, marking the fifth hike this year. The decision was driven by a material upward revision to inflation forecasts, with the board now expecting inflation to remain above the <strong>2-3% target range<\/strong> until late 2027.<\/p>\n<p>The board was notably divided, with <strong>six members voting for the hike<\/strong> while three preferred to hold rates at 4.60%. Governor Michele Bullock highlighted that <strong>AI-related investment<\/strong> is driving rapid price increases in technology goods, while domestic capacity pressures remain tighter than previously estimated.<\/p>\n<h2>Taiwan Dollar and Asian Markets Under Pressure<\/h2>\n<p>The <strong>Taiwan Dollar (TWD)<\/strong> dropped to its weakest level in 18 months, pressured by a massive sell-off in global semiconductor stocks. Foreign investors reportedly sold a net <strong>NT$165.3 billion<\/strong> of Taiwanese equities, the third-largest daily outflow on record, as concerns over AI investment returns and high US interest rates dampened regional sentiment.<\/p>\n<p>In response, Taiwan\u2019s central bank reportedly eased daily limits on <strong>US dollar sales by exporters<\/strong> to provide liquidity and support the local currency. Meanwhile, the <strong>Australian Dollar (AUD)<\/strong> weakened further, falling <strong>0.35% to $0.6974<\/strong> against the greenback following the RBA&#39;s less-than-unanimous hawkish signal.<\/p>\n<h2>Tech Sector and Analyst Adjustments<\/h2>\n<p>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) saw mixed sentiment from Wall Street ahead of its fiscal fourth-quarter earnings. While <strong>JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong> trimmed its price target to <strong>$355<\/strong>, other firms like Monness, Crespi, Hardt raised their targets to the same level, citing product innovation. Apple shares have gained approximately <strong>27% in 2026<\/strong>, outperforming peers as investors favor its &quot;asset-light&quot; AI strategy.<\/p>\n<p>In the fixed-income market, <strong>Chinese 1-month Treasury bills<\/strong> were auctioned at a yield of <strong>0.7957%<\/strong>. This comes as China&#39;s 10-year government bond yield continues to hover near <strong>1.63%<\/strong>, reflecting the broader trend of lower yields in the region compared to the US and Australia.<\/p>\n<h2>Michigan Senate Race Upended<\/h2>\n<p>In a significant political development less than 48 hours before the US elections, <strong>Representative Haley Stevens<\/strong> revoked her endorsement of fellow Democrat <strong>Abdul El-Sayed<\/strong>. Stevens announced she would instead support Republican candidate <strong>Mike Rogers<\/strong>, citing El-Sayed&#39;s fitness for office and a public rift over campaign strategy. The move has stunned party officials in a race that could determine control of the <strong>United States Senate<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Reserve Bank of Australia (RBA) raised the cash rate by 25 basis points to 4.85%, the highest level [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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