June Rate Report: RBA Keeps Cash Rate on Hold at 4.35%

This time last year, we were celebrating the second of what we hoped would be many cash rate cuts in 2025.

While rates did drop slightly, they never reached the lows some had projected, and when 2025 reached its end, it was clear that the cash rate’s next move was upwards.

With the last cash rate decision bringing the cash rate up to 4.35%, we’re a long shot from last year’s 3.60% bottom. However, with a downturn in property growth, slowing GDP growth^[1], and a slight increase in unemployment^[2], the cash rate is staying put, and ensuring mortgage repayments don’t increase for another month at least.

If You Have a Home Loan…

Variable rate home loans are unlikely to increase, which means your monthly mortgage repayments will, hopefully, stay the same.

A pause to increases may be a small victory for home owners, especially if we start to see rates come down in the future.

For homeowners on a fixed rate, your repayments will remain unchanged. But keep an eye on when your fixed rate expires, and schedule a chat with your MoneyQuest broker to ensure you transfer over to a competitive rate when it does.

If You’re Looking to Buy…

A cash rate hold means that borrowing power will probably be unaffected by rate changes, and with national home values on a downturn, the market could be shifting.

It’s worth remembering that the right time to buy is when it’s right for you. While market conditions have an impact, it comes down to your individual situation. Reaching out to your local MoneyQuest broker can help you calculate borrowing power and put together a home buying plan.

What’s Next? 

From the big banks, there is uncertainty about what future cash rate decisions will be. Westpac predicts at least one more cash rate hike this year,[3] while ANZ, Nab and Commonwealth bank believe the cash rate has peaked, and will remain on hold this year [4].

There is no certain answer on what will happen next with the cash rate, but this is the first time since last year that the conversation of cash rate cuts has been back on the table. Further increases are still very possible, but there a sign that the cash rate is becoming more stable.

If you’re feeling the impact of higher interest rates, it could be worth reaching out to your local MoneyQuest Mortgage Broker. We can help you review your current loan and ensure it still works for you, and if not, we can help you find a solution that does.

[1] RBA (2026). Statement by the Monetary Policy Board: Monetary Policy Decision | Media Releases. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/media-releases/2026/mr-26-15.html.

[2] Ell, K. (2026). Australia’s GDP slows as recession fears build. [online] Australian Broker. Available at: https://www.brokernews.com.au/news/breaking-news/australias-gdp-slows-as-recession-fears-build-289466.aspx [Accessed 15 Jun. 2026].

[3] Ellis, L. and Sharma, N. (2026). RBA and inflation view: June hold affirmed, increases still ahead. [online] Westpaciq.com.au. Available at: https://www.westpaciq.com.au/economics/2026/06/lucis-weekly-note-12-june-2026.

‌[4]Gordon, L. (2026). ANZ, Macquarie go against the tide, cutting fixed rates: could we be at the peak? [online] Canstar.com.au. Available at: https://www.canstar.com.au/news/anz-macquarie-cutting-fixed-rates/ [Accessed 15 Jun. 2026].

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