Australia's Central Bank Pauses Rate Hikes, Rules Out Cuts Until Late 2026

Australia's central bank held its benchmark rate steady at 4.35% on June 16, pausing after raising it in May. Officials expect inflation to remain above their 2–3% target through mid-2027, meaning interest rate cuts won't arrive before late 2026 at the earliest. The pause gives May's rate increase time to work through the economy. Despite headline pressures, real borrowing costs remain loose enough to support growth.