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Central Banks•30 June 2026•

1 min read

RBA Opts for Patience: Holds Rate Steady to Gauge Tightening Impact

Key Facts

1The Reserve Bank of Australia board kept the cash rate unchanged at the June meeting, choosing patience to assess the impact of previous tightening and oil supply disruptions.

Reaffirming a cautious monetary stance, the Reserve Bank of Australia's June meeting minutes showed the board unanimously voted to keep the cash rate unchanged. The board chose patience, preferring to assess the impact of past tightening moves and oil supply disruptions before making further policy adjustments.

This patience comes after weaker-than-expected Australian inflation data, with annual inflation at 4% in May versus a 4.4% forecast, while monthly inflation fell 0.7%, per market data. Labor market data also showed continued improvement, with 40.3k jobs added in June and the unemployment rate dropping to 4.4%. These readings reinforce the central bank's wait-and-see approach.

Traders are now eyeing the upcoming speech by RBA’s Hauser on June 24, alongside forthcoming inflation and labor market data, for clues on the rate path. With no clear pivot signals, the Australian dollar remains tied to macro data releases and oil price developments.