RBA Cash Rate Held AT 4.35%

Why Did The RBA Hold The Cash Rate In June 2026?

At its June meeting, the Reserve Bank of Australia left the cash rate on hold at 4.35%, pausing after three increases earlier in the year. The decision was unanimous. The Board’s reasoning came down to a few key points.

Inflation is still too high. Both headline and underlying inflation remain above where the Board wants them, although short-term inflation expectations have started to ease.

Oil prices have come off their peaks. Fuel and energy costs have eased in recent weeks, though they remain higher than before the conflict in the Middle East, and some businesses are still passing higher costs on to customers.

The earlier rate hikes are doing their job. Three increases this year have tightened financial conditions, consumer spending growth is slowing, and housing momentum has shifted, with prices falling in some capital cities. Unemployment also came in higher than expected in April.

The Board wanted time to assess. With the effects of past hikes and the oil supply disruption still flowing through, the Board judged it appropriate to wait and watch rather than move again this month.

This is a key concern because it suggests the inflation problem may become broader, not just limited to fuel and imported goods. If more businesses raise prices at the same time, inflation could stay above the RBA’s 2%–3% target range for longer.

This is a pause, not a pivot. The Board was clear it is prepared to raise the cash rate further if that is what it takes to stop inflation becoming entrenched.

Our Experts Take On The Board's Decision

Here is what our experts say about the cash rate decision and what it means for borrowers.

It’s a good time to buy because property prices have started to fall slightly. Borrowing power remains limited with the cash rate at its current peak, but that doesn’t have to stop you. If you find a property that suits your needs and sits comfortably within your budget, there’s no need to hold off.

Sid Bajracharya, Mortgage Broker

A hold is still good news for keeping the cost of living down, and should give confidence that the next RBA decision may be a cut if inflation continues on its current trajectory. It’s a good time to enter the market before other buyers return post-cut. Less competition now means buyers can potentially snag a better deal compared with waiting.

Robert Mo, Mortgage Broker

No change in the interest rate is good news for borrowers. Clients still have to cope with tough economic conditions in the current high-interest-rate, high-inflation environment.

Sheng Ye , Mortgage Broker

What A Hold Means For Your Repayments

With the cash rate steady, variable repayments should hold where they are this month. But lenders set their own rates and can move independently of the RBA, so it is worth checking your current rate against what else is on the market. If you are already on a competitive rate, a pause is a good window to get ahead while costs are stable.

5 Things You Should Do Now

• Recheck your borrowing power before making an offer, because even if rates hold, lenders are still assessing borrowers in a high-rate environment.
• Review your budget using your current repayment amount, because a hold does not reduce your monthly repayments or cost-of-living pressure.
• Keep looking if you are ready to buy, because slightly softer prices and lower competition may create opportunities before a future rate cut brings more buyers back.
• Avoid borrowing at your absolute limit so you have room for living costs, economic uncertainty and unexpected expenses.
• Speak to your broker before changing your property plans, as another lender, loan structure or timing strategy may still keep your goal within reach.

How The RBA Cash Rate Affects Interest Rates

Lenders add a margin to the official cash rate to determine the variable interest rate they offer to customers.

When the RBA raises the cash rate, lenders often increase their variable interest rates. This means your mortgage repayments go up.

When the RBA cuts the cash rate, lenders may lower interest rates. So, your repayments could go down. However, note that not all lenders pass on the full change.

If the cash rate is unchanged, your repayments usually stay the same. However, lenders can still change rates for other reasons.

Use our rate change calculator to find out what your repayments should look like whenever the cash rate changes.

Upcoming RBA Monetary Policy Board Meeting Calendar 2026

Source: rba.gov.au