RBA Holds Cash Rate at 4.35% but Retains Hawkish Tightening Bias

On June 16, 2026 the Reserve Bank of Australia kept the cash rate unchanged at 4.35%. The decision follows three hikes earlier in the year and comes amid inflation that picked up materially in the second half of 2025, fueled by elevated fuel prices from global oil disruptions. While the board noted tighter financial conditions, slower consumer spending and a softer housing market, it stressed that inflation risks remain elevated and explicitly retained the option to raise rates again if required. The unanimous hold supports a cautious hawkish stance for the AUD.