The Reserve Bank has announced to keep the cash rate on hold at 4.35%

The Reserve Bank of Australia has suspended interest rates at its June meeting on Tuesday afternoon. It's not a cause for celebration for homeowners, as struggling borrowers now often stay for months before rates are reduced to a more manageable level The RBA has maintained interest rates at 4.35 per cent throughout the year amid signs of slowing inflation due to economic weakness. The amount has not changed since November last year. In the June decision, many experts had predicted that the cuts could start as early as this month. But in recent months, many have revised their accounts, pushing back the expected date of the premium. As recently as April, financial markets were betting that the RBA would cut rates by 20 basis points to stay at 4.15 per cent at its June meeting But before today’s announcement, everyone was expecting costs to continue to fluctuate. Australia's big four banks had predicted the cuts would start from November this year.   Re-targeting inflation in a timely manner remains a key priority for the Board. This is in line with the RBA’s mandate for price stability and full employment. The board must be confident that prices are moving in a sustainable direction towards the target level. To date, medium-term inflation is in line with inflation expectations and this necessarily remains the case. Learn more about RBA Statement and Policy Decision on June 2024.