The Reserve Bank of Australia is holding the cash rate at 4.35 per cent, the level it reached in May 2026 after three rate rises earlier in the year unwound the cuts borrowers enjoyed in 2025. For anyone with a variable home loan, the practical message is simple: repayments are not coming down right now, and the next move is not due until August.
The June hold was widely expected, but it lands at an awkward spot for household budgets. The cash rate sat at 3.60 per cent as recently as late 2025. It is now three quarters of a percentage point higher, back at a peak last seen in 2023. Here is what happened, what it costs, and what to actually do about it before the next meeting.
How the cash rate got back to 4.35%
Through 2025 the RBA cut the cash rate three times, taking it from 4.35 per cent down to 3.60 per cent by August. That easing has now been reversed. According to the Reserve Bank’s own cash rate record, the Board lifted the rate by 0.25 percentage points on three occasions in early 2026: to 3.85 per cent in February, to 4.10 per cent in March, and to 4.35 per cent in May. At its meeting on 16 June, the Board left the rate unchanged at 4.35 per cent.
In plain terms, the cash rate has done a full round trip. The cuts of 2025 are gone, and mortgage holders are paying roughly what they were at the previous peak.
The Reserve Bank pointed to inflation as the reason for the tightening. In its June statement the Board noted that inflation picked up materially in the second half of 2025, that headline and underlying inflation remain too high, and that higher global energy prices, linked to conflict in the Middle East, have added to cost pressures. It also flagged that momentum in the housing market has shifted, with prices falling in some capital cities.
What the hold means for your repayments
A hold is not a cut. If you are on a variable rate, your repayment is not falling because the RBA paused. It simply stops the recent run of increases from continuing for now.
The bigger number for most households is the cumulative effect of the three 2026 rises. Three lots of 0.25 percentage points add up to 0.75 percentage points. On a $600,000 variable loan, that is in the order of $270 a month more than you were paying when the rate bottomed out in 2025, assuming your lender passed each rise on in full. Scale that up or down with your balance. These figures are rough illustrations, last checked July 2026, not a calculation for your specific loan.
Fixed rate borrowers are insulated during their fixed term, but only until it ends. If you fixed when rates were lower and your term is rolling off this year, budget now for a higher rate when you revert, rather than being surprised by it. If you are weighing your options, our explainer on fixed vs variable home loans walks through the trade-off.
Do not wait for the RBA to rescue your rate
Here is the part that matters most. The cash rate is only one input into what you pay. The other, and often the larger one, is whether your lender is giving you a competitive rate in the first place. A hold from the RBA changes nothing about that, and it is entirely within your control.
Waiting for the Reserve Bank to cut is passive. Checking your own rate and asking for better is active, and it usually moves more money.
Two lenders offering variable loans to similar borrowers can be half a percentage point apart or more. On a $600,000 loan, half a point is worth far more than a single RBA move. So rather than watching the cash rate and hoping, treat this hold as a prompt to do three things:
- Check your actual rate. Log in or read a recent statement and note your current variable rate, not the one you signed up for.
- Compare it to the market. A rate that was sharp two years ago may now be well above what new customers are offered.
- Ask, then switch if needed. A retention call asking for a discount often works. If it does not, refinancing to a cheaper lender can beat any rate decision. It is worth taking a moment to see how your rate stacks up against current lenders before you decide.
If refinancing looks like the move, our walkthrough on how to refinance your home loan covers the costs, the timing and the traps before you commit.
When is the next decision?
There is no RBA meeting in July. The Monetary Policy Board next meets on 10 and 11 August 2026, with the decision announced at the conclusion of that meeting. Until then, the cash rate stays at 4.35 per cent.
Nobody can reliably tell you what the Board will do in August. The Reserve Bank itself flagged heightened uncertainty about the outlook for inflation and activity, including scenarios where inflation runs higher than its May forecasts. That cuts both ways: another rise is possible if inflation stays sticky, and a pause or eventual cut is possible if it cools. Treat any forecast you read, here or elsewhere, as a guess rather than a plan.
For the current cash rate and the confirmed schedule of meeting dates, check directly with the Reserve Bank of Australia. Both the rate and the schedule can change, so verify at the source rather than relying on a number that may already be out of date.
This article is general information only and is not personal financial, tax or legal advice. Your loan, lender and circumstances will differ, so consider getting advice tailored to you before acting.
The bottom line
The cash rate is back at 4.35 per cent, three rises in early 2026 have cancelled out last year’s cuts, and the June hold gives borrowers a pause but not relief. The next decision is not due until August, and it could go either way. The productive response is not to wait on the RBA. It is to check what you are actually paying, compare it against the market, and be willing to ask for better or switch. That single review will almost certainly move more money than the next rate decision does.