Interest rates on hold for now, but inflation fight continues

The RBA has been clear and consistent; inflation remains too high in Australia and the current levels of aggregate demand are at least maintaining, or more likely, pushing core inflation even higher, writes KPMG’s Chief Economist Brendan Rynne.

Australian mortgage holders will be breathing a sigh of relief, after three rate rises in a row. However, Tuesday's decision by the Reserve Bank of Australia (RBA) Board to pause movement on rates, is likely to be short lived. Register for an upcoming webinar: Upcoming webinar: Global Economic & Geopolitical Outlook – June 2026 With the Iran conflict seemingly winding down and the real prospect of oil prices falling as a result, the RBA will no doubt be feeling slightly more ...

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Authors: Brendan Rynne

Published Date: 17 June 2026