Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
RBA Cash Rate, June 2026
The Reserve Bank of Australia held the cash rate at 4.35% at its June 2026 meeting, the rate unchanged since November 2023. The cash rate has been at 4.35% since November 2023. The board continues to monitor inflation data before considering any cuts.
What matters for borrowers isn't the RBA rate itself, it's whether your lender passes on the full cut. Major banks typically pass on RBA cuts to variable rate customers, but not always in full, and not always on time. After every RBA decision, I review which lenders have moved and by how much. If your lender isn't passing on cuts, that's a trigger to refinance.
How RBA Rate Changes Affect Your Repayments
Each 0.25% rate change (one standard cut or hike) changes monthly repayments approximately as follows:
- $500,000 loan: ~$75–$80/month per 0.25% change
- $750,000 loan: ~$115–$120/month per 0.25% change
- $1,000,000 loan: ~$155–$160/month per 0.25% change
- $1,500,000 loan: ~$230–$240/month per 0.25% change
Fixed vs Variable, Who Gets Rate Cuts?
Variable rate borrowers: rate cuts flow through immediately (subject to lender passing them on). Fixed rate borrowers: not affected until the fixed period expires. If you're on a fixed rate and the market has moved significantly below your rate, calculating the break cost and refinancing may make sense, we model this for clients regularly.
2025–2026 Rate Timeline
- November 2023: Peak rate of 4.60%, 13 consecutive hikes since May 2022
- November 2023 – June 2026: Hold at 4.35% (no change)
What to Watch for at Upcoming RBA Meetings
The RBA meets eight times per year. The next meeting is in August 2026. Key factors influencing further decisions: CPI inflation (target band 2 to 3%), employment data, GDP growth, global economic conditions and the housing market. Market pricing in June 2026 suggests one further cut through the remainder of 2026 is possible, but the RBA has emphasised data-dependency rather than a predetermined path.
What Rate Cuts Mean for Property
Each rate cut improves borrowing capacity, roughly $10,000–$15,000 more per 0.25% cut on a typical income. When cuts do arrive, they would improve Sydney buyer capacity by approximately $10,000 to $15,000 per 0.25% reduction.
