The Reserve Bank of Australia (RBA) has held the cash rate today amid tightening financial conditions.
This keeps the cash rate at 4.35%, with the average rate for a new owner occupier home loan likely to remain around 6.25% p.a. while the average bonus savings account rate will hold around 4.75% p.a.
That's a wrap
Published 4:45pm, Tuesday
That's it for today's live coverage of the June RBA decision to hold the cash rate at 4.35%.
We'll be back on 11 August to report on the next meeting of the RBA monetary policy board.
'Snapping the stick'
Published 4:40pm, Tuesday
In ending today's media conference, RBA governor Michele Bullock agreed there is a risk of waiting too long for inflation to get back to target.
In response to a question about "snapping the inflation stick", Ms Bullock said you can't wait until you see all the evidence you're heading in the right direction because "it might be too late".
"The board really still tries to think in those terms, that if we wait - call it 'snapping the stick' - it's probably too late," she said.
RBA not aiming for a recession, doesn't foresee one
Published 4:20pm, Tuesday
RBA governor Michele Bullock denied the central bank is aiming to put the economy into a recession and isn't expecting one.
She was responding to a question about balancing inflation with the RBA's mandate to achieve full employment.
Ms Bullock said there was no plan to put the economy into recession, rather the RBA was wanting to slow it enough to bring inflation back to target (2-3%) while trying to keep employment growing.
She said if the RBA's forecasts suggested the unemployment was going to increase substantially, the board would have to reconsider whether its monetary policy settings were appropriate.
Future rate increases still on the table
Published 4:15pm, Tuesday
Backing up the statement from today's meeting, Ms Bullock has not ruled out another rate increase if it's warranted.
She acknowledged the differing views of economists with many now believing the next cash rate movement with be downwards sometime in 2027.
"I can't rule out that if inflation doesn't respond in the way we expect it to do, then we might have to do more," she said.
"I'm just not ruling that out."
Wage increase sparks "revision": Bullock
Published 4:02pm, Tuesday
RBA governor Michele Bullock acknowledged the recent Fair Work Commission's decision to increase the award wage by 4.75% and the minimum wage by 6% will see an upside revision to RBA wage forecasts.
She said the outcome was higher than the central bank had expected but pointed out the bigger increase was for the nation's lowest-paid workers.
Ms Bullock said the board would watch how that plays out.
No rate rise considered in June
Published 4:00pm, Tuesday
RBA governor Michele Bullock has confirmed the monetary policy board didn't consider increasing the cash rate at today's meeting.
But she told a media conference the board will not hesitate to increase the cash rate further if inflation persists in the economy.
Ms Bullock said there were two reasons inflation continued to be an issue:
1) inflation was a problem before the conflict in the Middle East
2) there remained the real threat of flow-through of increased fuel costs to other prices of goods and services in the economy
She said this was already evident in new dwelling costs and reiterated the board would continue to monitor the situation.
RBA governor to face the media
Published 3:30pm, Tuesday
Reserve Bank of Australia governor Michele Bullock is due to address a media conference at 3:30 pm (AEST) following today's decision to hold the cash rate.
(3:00 pm ACST and 12:30 pm in Western Australia)
Hawkish undertone to RBA statement
Published 3:15pm, Tuesday
Some pundits are noting a slightly hawkish undertone to today's decision statement.
Commentators generally comb every word of RBA utterances in a bid to interpret the direction of future cash rate decisions.
After outlining its case supporting today's decision to hold, perhaps the clue to the board's position is best summed up by its closing statement:
"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."
Another cash rate increase in 2026 had been ruled out by three of the big four banks prior to today's decision although Westpac remains committed to its forecast of two more cash rate hikes in August and September.
Financial conditions tightening
Published 2:49pm, Tuesday
The RBA notes financial conditions have tightened this year in response to three cash rate increases.
The board acknowledges signs that consumer spending is slowing as expected and momentum in the housing market has shifted, with home prices falling in some capital cities.
The unemployment rate, at 4.5%, was "higher than expected" in April, but the board said other measures of labour market conditions have been more resilient.
The board points out resolution of the conflict in the Middle East is "at an early stage", and there are plausible scenarios where inflation is higher and activity is lower than previously forecast.
The board expects global oil supply issues will take some time to resolve, maintaining upward pressure on global energy prices - and inflation.
Inflation "still too high"
Published 2:40pm, Tuesday
The RBA's statement accompanying today's decision notes inflation is likely to remain high for some time.
It says the board remains focused on ensuring that inflation does not become embedded once higher oil prices pass through the economy.
The statement acknowledges financial conditions are now tighter on the back of three consecutive cash rate increases, and there are signs the economy is slowing as expected.
Despite this, the board agrees inflation is still too high.
However, it judged it was appropriate to leave the cash rate target unchanged while it assesses the response to previous interest rate rises and the impact of global oil supply disruption.
Unanimous decision to hold cash rate
Published 2:33pm, Tuesday
The RBA has reported the decision to keep the cash rate at 4.35% was unanimous.
RBA holds cash rate at 4.35%
Published 2:30pm, Tuesday
The RBA monetary policy board has decided to hold the cash rate at 4.35% at its June meeting.
RBA June cash rate decision imminent
Published 2:25pm, Tuesday
The Reserve Bank of Australia monetary policy board will publish its decision and post-meeting statement in around five minutes.
Once the outcome is announced at 2:30 pm (AEST), the market will have an hour to digest the news before RBA governor Michele Bullock fronts a media conference at 3:30 pm (AEST).
What will an RBA rate hold mean to savers?
Published 2:20pm, Tuesday
People holding cash have fared well so far in 2026 with three consecutive interest rate increases pushing up savings and term deposit rates.
The highest savings rates are around 5.75% p.a., provided the account holder meets various conditions, while the highest term deposit rate is 5.70% p.a. for a five-year deposit with Rabobank, albeit for cash balances over $500,000 - $2 million.
The highest one-year term deposit rates are around 5.35% p.a.
A hold in rates is a good opportunity for those holding cash to compare the latest savings rates which have now bedded in following the May cash rate increase.
The data behind today’s cash rate call
Published 2:00pm, Tuesday
The RBA’s monetary policy board will consider a comprehensive suite of data when make its decision.
Arguably, the key piece of data for any cash rate call is CPI inflation, with headline inflation recorded in April at 4.2%.
That was a fall from the 4.6% reading in March, thanks largely to the federal government temporarily cutting fuel excise tax in a bid to ease petrol prices amid the conflict in the Middle East.
However, underlying inflation - the RBA’s preferred measure - ticked higher in April to 3.4% - well above the central bank’s stated target range of 2-3%.
The board won’t have the May inflation data at hand in today’s meeting.
That is due to be released on Wednesday next week.
Since the last meeting, subsequent data releases have indicated a softening of the economy with slowing growth, weak productivity, a rise in the unemployment rate to 4.5%, and plunging consumer and business confidence.
Many economists believe the data showing a weakening economy will see the RBA will hold the cash rate this month.
What are the experts predicting for today’s RBA cash rate decision?
Published 1:45pm, Tuesday
Most economists and markets are unanimous there will be no change in the 4.35% cash rate at today’s meeting of the RBA’s Monetary Policy Board.
They believe a hold is in order following three consecutive 25-basis point cash rate hikes in 2026 - in February, March, and May.
Financial markets have been pricing in a 0% chance of a change to the cash rate in June almost as soon as the May cash rate increase was announced.
After the May meeting, Reserve Bank governor Michele Bullock acknowledged the raised 4.35% cash rate was “a bit restrictive” but had given the board the room to pause and assess how the global situation and past rate hikes have impacted the Australian economy.
It’s also worth noting the US announced this week it has reached a peace agreement with Iran which includes the opening the Strait of Hormuz, easing longer-term concerns over the flow of oil and fuel prices.
Experts believe this will add even more weight to a rate hold.
When will the RBA announce its interest rate decision?
Published 1:40pm, Tuesday
The RBA monetary policy board will deliver its verdict on the cash rate at 2:30pm AEDT.
Those under Australian Central Standard Time (ACST) will receive the news at 2pm while in Western Australia, the decision will be announced at 11:30am AWST.
Welcome: LIVE coverage of the RBA's June cash rate decision
Published 12:00pm, Tuesday
Hello and welcome to Savings.com.au's live RBA cash rate coverage. I'm Denise, Savings.com.au's senior finance journalist, and I'll be with you today giving you the latest on the RBA's June decision, expert and industry commentary, and any responses from major banks and lenders.
PLEASE refresh this page periodically for the latest updates and if you have any questions, hit me up at denise.raward@savings.com.au.