RFS Finance

The Reserve Bank of Australia (RBA) has left the official cash rate unchanged at 4.35 per cent, a move widely expected by economists and market commentators | by Adrian Suljanovic IFA (Independent Financial Adviser) June 16, 2026

This decision follows three consecutive cash rate hikes in February, March and May, which were predominately spurred on by rising inflation and global economic turmoil after the onset of the US/Iran war, which sent oil prices skyrocketing worldwide following the closure of the Strait of Hormuz.

Preceding the announcement, Australia’s major banks shifted their forecasts to reflect that the RBA will likely keep interest rates at its current level of 4.35 per cent, with the possibility of monetary policy easing continuing in the later half of 2027.

This view is held by CBA, ANZ and NAB, with Westpac remaining the single outlier (at the time of writing), forecasting two further rate hikes in August and September, which would bring the cash rate to 4.85 per cent.

Westpac argued that inflation risks remain too prevalent for the RBA to claim victory, pointing to higher energy prices, wage growth and ongoing tensions in the Middle East.

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