June 2026 RBA Rate Decision:
Cash Rate Held at 4.35%

At its June 2026 meeting, the Reserve Bank of Australia left the cash rate unchanged at 4.35%. The decision pauses a tightening cycle that lifted the rate 75 basis points across three consecutive hikes - to 3.85% in February, 4.10% in March and 4.35% in May. The board was unanimous.

The board said headline and underlying inflation are "still too high" and "likely to remain high for some time", with Middle East oil supply disruptions continuing to push energy prices up and fuel costs "passing through to the prices of other goods and services". The unemployment rate rose unexpectedly in April, though other labour market measures held up. The statement signalled the board would "do what it considers necessary to achieve that outcome, including increasing the cash rate target further if required" - keeping the door open to more tightening if inflation does not ease.

What this means for borrowers

For variable rate mortgage holders, a hold means repayments don't move - but they also don't unwind any of the increases from the past four months. On a $600,000 loan with 25 years remaining at around 6.09%, repayments are approximately $272 a month higher than they were at the start of the year, before the February, March and May hikes flowed through.

• Use the pause to review your rate. If you haven't compared your loan in over 12 months, now is a good window. The best available rates can be 50 basis points or more below what existing customers are paying.
• Maximise your offset. With the cash rate at 4.35%, every dollar in offset is saving you interest at a meaningfully higher rate than 12 months ago. See the impact with our Budget & Offset Calculator.
• Plan for either direction. The board's forward guidance leaves further hikes on the table if oil-driven inflation persists. Stress-test your budget against a 4.60% cash rate scenario so a future move doesn't catch you off guard.

At Loan Hive, we help Gold Coast borrowers navigate every stage of the rate cycle. If you'd like a no-obligation review of your current loan, get in touch today.

Cash rate - 10 year history

All cash rate movements

Every RBA board decision - hikes, cuts and holds. Links to the RBA media release and board minutes are included where available.

Source: RBA Cash Rate Target · updated after each RBA meeting