16/06/2026
At its meeting yesterday, the RBA decided to leave the cash rate target unchanged at 4.35%.
Inflation picked up materially in the second half of 2025, and information since the beginning of this year confirms that some of the increase reflected greater capacity pressures. The latest data show that headline and underlying inflation are still too high. Oil prices have eased in recent weeks, although energy and most related commodity prices remain higher than they were prior to the conflict in the Middle East. There are signs that some firms experiencing cost pressures are increasing the prices of their goods and services and others are looking to do so. Short-term measures of inflation expectations have eased but remain higher than earlier in the year.
Financial conditions have tightened this year in response to three increases in the cash rate target. Money market interest rates and government bond yields have risen, and the exchange rate has appreciated. There are signs that growth in consumer spending is slowing as expected and momentum in the housing market has shifted, with housing prices falling in some capital cities. The unemployment rate was higher than expected in April, but other measures of labour market conditions have been more resilient. Growth in business investment is strong and credit is readily available to both households and businesses.
Read here ๐
https://www.rba.gov.au/media-releases/2026/mr-26-15.html