MNI RBA Review-June 2026: RBA Retains Option To Hike
Jun-17 06:21By: Maxine Koster
Australia
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EXECUTIVE SUMMARY:
- The RBA Board made the unanimous decision to leave rates at 4.35%, as was widely expected, since the economy is broadly developing as it expects. It didn’t discuss a hike at the June meeting
- It was clear though that it has retained its tightening bias and the pause in June “doesn’t rule out” further rate increases as inflation remains “too high” and risks remain that higher costs could become “embedded”.
- 75bp of tightening this year had tightened financial conditions and there were signs of demand slowing, which Bullock told journalists not to be surprised about as it was necessary to bring inflation down given the supply side is constrained and only growing around 2%.
