The Reserve Bank of Australia kept its cash rate target unchanged at 4.35% at its meeting on 16 June, a unanimous decision following three consecutive hikes earlier in 2026.
In its statement, the board said headline and underlying inflation remain too high. While oil prices have eased in recent weeks, energy and related commodity prices are still above pre-conflict levels following tensions in the Middle East. The board said it remains focused on ensuring inflation does not become embedded once the impulse from higher oil prices has passed, adding that demand growth needs to slow to ease capacity pressures and return inflation to target.
Speaking afterwards, Governor Michele Bullock said the board did not consider a rate rise this month but would not rule out further increases if needed. The next decision is due in August, with the latest quarterly inflation data expected 24 June.
