RBA holds at 4.35% in June: what the pause means for your mortgage
The Reserve Bank left the cash rate at 4.35% on 16 June 2026, after three rises this year. The vote was unanimous. The Board also said it will keep the option of raising the rate again "if required". On an example $750,000 loan, the three rises have added about $359 a month.
A pause is not the same as a cut. The Board's own statement is careful about that, and it is worth reading the way a lender will.
The cash rate started 2026 at 3.60%. It has moved up by 0.25 of a point three times since: in February, March and May. This month it held.
Key facts, as at 16 June 2026
- Decision on 16 June: cash rate target unchanged at 4.35%, vote unanimous
- Rises so far in 2026: three, each 0.25 of a point (February, March, May)
- Board's view of housing: "momentum in the housing market has shifted, with housing prices falling in some capital cities"
- Next decision: August
Source: Reserve Bank of Australia, statement of 16 June 2026
What the Board said
The statement gives three reasons for holding, and they point in different directions.
Inflation is still too high. In the Board's words: "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."
The rises are working. "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."
There is no promise in either direction. The statement ends by saying the Board will do what it considers necessary, "including increasing the cash rate target further if required".
Read together: the Board paused to see how the first three rises land. It has not said it is finished.
| Cash rate target | |
|---|---|
| Jan | 3.6% |
| Feb | 3.85% |
| Mar | 4.1% |
| Apr | 4.1% |
| May | 4.35% |
| Jun | 4.35% |
Source: Reserve Bank of Australia, cash rate target. Rises took effect on 4 February, 18 March and 6 May.
What three rises cost
Here is a $750,000 loan over 30 years, principal and interest. The rates are an example: they start at 5.50% and add the three rises of 0.25 each. Your own lender may have moved by a different amount.
| Example loan rate | Monthly repayment | More than before |
|---|---|---|
| 5.50% (start of year) | $4,258 | |
| 5.75% (after February) | $4,377 | $119 |
| 6.00% (after March) | $4,497 | $239 |
| 6.25% (after May) | $4,618 | $359 |
That is about $4,300 a year. On a $500,000 loan the same three rises add about $240 a month, and on $1,000,000 about $479.
A fourth rise from 6.25% to 6.50% would add roughly $123 a month more. A cut of the same size would take off about $121.
What we would do
Plan on today's rate staying. A pause with "further if required" in the same statement is not a signal to wait for relief.
Check your own lender. Not every lender passes on a rise in full or on the same day. Look at your latest statement, not the headlines.
Think about the bank's test as well as the payment. When you apply for a loan, the bank tests you at a rate well above today's. Each rise tightens that test. We explain how in our earlier post on the cash rate and property prices.
Open the Loan Repayment Calculator
Frequently asked questions
What did the RBA decide on 16 June 2026?
The Board left the cash rate target unchanged at 4.35%. The decision was unanimous.
How many times has the RBA raised rates in 2026 so far?
Three times: by 0.25 of a point in February, March and May. The cash rate began the year at 3.60%.
Could the RBA raise rates again?
The Board said it will do what it considers necessary, "including increasing the cash rate target further if required". It did not commit either way.
How much do three rate rises add to a $750,000 mortgage?
On an example 30 year principal and interest loan, moving from 5.50% to 6.25% adds about $359 a month, or about $4,300 a year.
Sources
- Reserve Bank of Australia, Statement by the Monetary Policy Board, 16 June 2026
- Reserve Bank of Australia, cash rate target
Repayments are our own arithmetic on example rates, 30 year principal and interest. This is general information, not financial advice. Speak to your broker about your own loan.