RBA reveals June 2026 cash rate call

Following three straight rate rises, find out here if the Reserve Bank of Australia has again decided to lift the cash rate.

At each of its three meetings in 2026 to date – in February, March, and May – the board of the Reserve Bank of Australia increased the cash rate by 25 basis points, taking the rate from 3.6 per cent at the start of the year to 4.35 per cent, prior to this week’s RBA board meeting.

Today, the RBA has decided, in a unanimous decision, to hold the cash rate at 4.35 per cent.

In its statement, the board said: “As expected, the disruption to global oil supply is having an impact on inflation. Higher fuel prices have added directly to inflation, and there are indications that this is passing through to the prices of other goods and services, so inflation is likely to remain high for some time. This inflation impulse is in addition to the high inflation recorded around the start of 2026, reflecting capacity pressures in the economy.

“The board remains focused on ensuring that inflation does not become embedded once the impulse from higher oil prices has passed through. To achieve this, growth in demand needs to slow to reduce capacity pressures and help bring inflation back to target. Following the three increases in the cash rate target since the beginning of the year, financial conditions are now tighter than they were, and there are signs that the economy is slowing as expected. But inflation is still too high, and the board judged that it was appropriate to leave the cash rate target unchanged while it assesses the response to previous interest rate rises and the impact of the oil supply disruption.

“The board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. Monetary policy is well placed to respond to developments, and the board is focused on its mandate to deliver price stability and full employment. It will do what it considers necessary to achieve that outcome, including increasing the cash rate target further if required.”

Reflecting on the decision, Employment Hero’s Asia-Pacific managing director, James Keene, said the RBA’s hold reflects the balancing act facing the Australian economy right now, “and our latest data gives us a clear view of what that looks like on the ground for SMBs”.

“Our data shows that business expansion rebounded 1.1 per cent month on month in May after a slight dip in April, with annual growth holding at 8.4 per cent. But look beneath the headline, and you can see how carefully businesses are managing that growth. Casual employment is up 10.8 per cent year on year, more than double the rate of full-time roles. Wage growth has eased to 4.5 per cent annually, a 10-month low,” he said.

“Businesses aren’t pulling back. They’re being deliberate. Growing where they can, controlling costs where they need to, and avoiding long-term commitments until they have greater certainty around the economic outlook. In this environment, we’re seeing a growing focus on productivity and AI-enabled tools that can help businesses reduce administrative burden, improve efficiency, and maintain growth without significantly increasing costs.”

“A sustained period of stability from the RBA would be welcomed so businesses can plan more confidently, but what many employers are ultimately looking for is a clearer path towards lower rates and stronger economic momentum.”

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Jerome Doraisamy

Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.