As inflation remains stubbornly above target and labour market still struggling, a rate cut is predicted to be highly unlikely by experts.
The Reserve Bank of Australia (RBA) kept the cash rate unchanged at 4.35% in June, a move widely anticipated after three consecutive increases at earlier meetings. The pause offers some relief for borrowers—particularly those early in their loan term—who have faced roughly $350 in additional monthly repayments since the RBA began tightening in February, based on the average owner‑occupier mortgage of $735,000 in the December quarter of 2025.
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