Powered by
MOMENTUM
MEDIA
Following three straight rate rises, find out – in this special announcement, brought to you by Legal Home Loans – if the Reserve Bank of Australia has again decided to lift the cash rate.
At each of its three meetings in 2026 to date – in February, March, and May – the board of the Reserve Bank of Australia increased the cash rate by 25 basis points, taking the rate from 3.6 per cent at the start of the year to 4.35 per cent, prior to this week’s RBA board meeting.
Today (16 June), the RBA has decided, in a unanimous decision, to hold the cash rate at 4.35 per cent.
In its statement, the board said: “As expected, the disruption to global oil supply is having an impact on inflation. Higher fuel prices have added directly to inflation, and there are indications that this is passing through to the prices of other goods and services, so inflation is likely to remain high for some time. This inflation impulse is in addition to the high inflation recorded around the start of 2026, reflecting capacity pressures in the economy.
“The board remains focused on ensuring that inflation does not become embedded once the impulse from higher oil prices has passed through. To achieve this, growth in demand needs to slow to reduce capacity pressures and help bring inflation back to target. Following the three increases in the cash rate target since the beginning of the year, financial conditions are now tighter than they were, and there are signs that the economy is slowing as expected. But inflation is still too high, and the board judged that it was appropriate to leave the cash rate target unchanged while it assesses the response to previous interest rate rises and the impact of the oil supply disruption.
“The board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. Monetary policy is well placed to respond to developments, and the board is focused on its mandate to deliver price stability and full employment. It will do what it considers necessary to achieve that outcome, including increasing the cash rate target further if required.”
In conversation with Lawyers Weekly, Legal Home Loans director of sales Cullen Haynes said that today’s decision marks the first hold to the cash rate this year and will provide stability for borrowers.
“The current average interest rate range for residential loans we are seeing today is approximately between 5.9 per cent [and] 6.5 per cent, depending on the product and your borrowing profile,” he said.
“While inflation eased slightly in April, it remains above the RBA’s preferred target range. The RBA will need to see inflation on a downward trajectory before they consider any rate cuts.”
“Some economists believe interest rates may have peaked, with expectations of a gradual downward trend from here.”
Legal Home Loans is continuing to see strong refinancing activity, Haynes continued.
“Many borrowers are reassessing their current rate and lender, considering the consecutive rate hikes this year. Reviewing your loan helps ensure it remains competitive and suited to your needs,” he said.
“Legal professionals can access certain market advantages that can make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for lawyers to gauge what’s best for your individual situation.”
Jerome Doraisamy is the managing editor of professional services (including Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times). He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
You can email Jerome at:
