RBA Keeps Cash Rate on Hold at 4.35%

The Reserve Bank of Australia has kept the official cash rate unchanged at 4.35%, pausing after three rate increases earlier this year.

For borrowers, this pause is welcome news — but it does not necessarily mean interest rates are on the way down yet.

Inflation remains the RBA’s key concern, and the Board has made it clear that further rate increases are still possible if inflation remains persistent.

We are also starting to see the impact of higher interest rates across the economy. Consumer spending has slowed, financial conditions have tightened, and housing market momentum has softened. Over the quarter, dwelling values declined by 0.9% in Sydney and 1.5% in Melbourne, reflecting reduced borrowing capacity and more cautious buyer sentiment.

Source: RBA

June 2026