RBA cash rate 4.35% stayed unchanged after the central bank left policy on hold in line with market expectations. The decision paused a run of three rate increases earlier in 2026. Policymakers said they wanted more time to judge how past tightening is affecting demand, housing, and inflation.
The Reserve Bank of Australia also said policy remains restrictive and guided by incoming data. Governor Bullock noted slower growth and strain on households. However, she said underlying inflation still sits above target.
RBA Cash Rate 4.35% in Focus
Bullock also said higher fuel costs are feeding more broadly into prices. Therefore, her comments pointed to a willingness to raise rates again if inflation stays sticky. The market, however, is not pricing further hikes after weak Australian data in recent weeks and the US-Iran breakthrough.
Elsewhere, Deputy Governor Uchida led the Bank of Japan press conference for Governor Ueda. He repeated that the central bank will keep raising rates if the economy and inflation develop as expected. As a result, he kept the bank’s normalization message in place.
BoJ Keeps Tightening Message
Uchida said wage growth and inflation momentum remain strong enough to support gradual tightening. Meanwhile, his remarks backed expectations for more rate increases later this year. The Japanese yen weakened because traders did not hear strong hawkish signals.
In the European session, reports also said Iranian tankers passed through the Strait of Hormuz after the United States lifted its naval blockade. That move marked the clearest sign yet that the US-Iran memorandum of understanding is moving into practical use.
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