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RBA Keeps Cash Rate at 4.35%

The decision limits near‑term changes to mortgage costs, signalling the bank’s cautious stance on inflation and growth.

Overview

  • The Reserve Bank of Australia kept its official cash rate at 4.35 per cent, a decision confirmed on Tuesday, June 16, 2026.
  • Markets had expected a hold, and the RBA’s announcement matched those forecasts without changing policy guidance.
  • Mortgage holders were reported to be bracing ahead of the decision because the cash rate directly shapes home loan repayments.
  • RBA Governor Michele Bullock addressed the decision, emphasising the bank’s careful approach to balancing inflation risks and economic activity.
  • The hold keeps borrowing costs steady for now but leaves future moves dependent on incoming inflation and growth data that the bank will monitor closely.