The Reserve Bank of Australia (RBA) has left the cash rate unchanged at 4.35% following its June monetary policy meeting. Read the full statement here.
The latest inflation data presents a mixed picture. Annual trimmed mean inflation – the RBA’s preferred measure – rose to 3.4% in the 12 months to April 2026, up from 3.3% in March, according to the Australian Bureau of Statistics. Headline inflation, however, eased to 4.2% over the same period, down from 4.6% in March, as fuel price pressures began to moderate following a temporary reduction in the fuel excise duty.
At its May meeting, where the Reserve Bank raised the cash rate for the third time in a row, the Board said interest rates were now likely high enough to slow the economy. This would give policymakers time to monitor developments in the Middle East and assess how Australian households and businesses respond to higher borrowing costs. RBA assistant governor Sarah Hunter recently reinforced this view, saying the Board is closely watching inflation expectations to make sure temporary price pressures do not become a longer-term problem.
