RBA Holds Cash Rate at 4.35%
The Reserve Bank has left the cash rate unchanged at 4.35% at its June 2026 meeting.
The decision was unanimous.
The RBA has paused after three rate increases earlier this year, but it has not ruled out further increases.
Why rates were left on hold
Inflation is still too high.
The RBA said inflation picked up in late 2025 and has remained elevated in 2026. Higher oil and energy prices have also added pressure, with some businesses passing higher costs on to customers.
The Board wants to see whether the earlier rate rises are now slowing the economy enough to bring inflation back under control.
What it means for borrowers
A rate hold gives borrowers some breathing room, but it does not mean rates have peaked.
The RBA made it clear that it may raise rates again if inflation does not improve.
Borrowers should use this time to review:
• Current interest rate
• Repayments
• Fixed and variable options
• Loan structure
• Investment loan cash flow
• Refinance options
• Borrowing capacity
Housing market update
The RBA noted that consumer spending is slowing and housing momentum has shifted, with prices falling in some capital cities.
This shows higher rates are starting to work through the economy.
What to do now
This is a good time to review your lending position.
Do not wait until the next rate rise to check whether your loan is still suitable.
For homeowners, investors and SMSF borrowers, structure matters more than ever.
Robert Sestan
Park Road Finance
0410 514 887
robert.sestan@parkroadfinance.com.au
parkroadfinance.com.au
General information only. This is not personal lending, legal, tax or financial advice.