The Reserve Bank has kept interest rates on hold at 4.35 per cent at its June meeting, providing a reprieve for borrowers after three consecutive rate hikes.<\/p>\n
The ASX 200 clawed back ground through the session to finish a few points in positive territory. Overnight, the US-Iran ceasefire deal has buoyed sentiment among investors, with the Dow rallying to a record close on Wall Street.<\/p>\n
Look back on how the session unfolded, plus the day’s financial news and insights from our specialist business reporters on our live blog.<\/p>\n
Disclaimer: this blog is not intended as investment advice.<\/p>\n
Tue 16 Jun 2026 at 2:31pm<\/p>\n
Tue 16 Jun 2026 at 2:31pm<\/p>\n
Reserve Bank holds interest rates steady after three hikes<\/p>\n
The RBA board has left the cash rate on hold in June, at 4.35%.<\/p>\n
The decision was unanimous.<\/p>\n
Tue 16 Jun 2026 at 5:26pm<\/p>\n
Tue 16 Jun 2026 at 5:26pm<\/p>\n
Until tomorrow<\/p>\n
Thanks for your company here on rates day.<\/p>\n
Appreciate all your comments and questions as always.<\/p>\n
We’ll be back bright and early with more markets coverage.<\/p>\n
Until then, enjoy your evening.<\/p>\n
LoadingTue 16 Jun 2026 at 5:06pm<\/p>\n
Tue 16 Jun 2026 at 5:06pm<\/p>\n
Westpac continues to forecast rate hike in August<\/p>\n
For the mortgage borrowers enjoying a reprieve from rate rises, the bad news is Westpac<\/b> economists still think it’s likely short-lived.<\/p>\n
Westpac chief economist Luci Ellis<\/b>\u00a0has retained her forecast for another increase to the cash rate in August<\/b>.<\/p>\n
That keeps the current divergence in opinions between some major forecasters alive and well.<\/p>\n
Dr Ellis described the RBA’s decision to keep rates unchanged as “universally expected” but said\u00a0 “in a move that was less surprising to us than to some in the market, it explicitly signalled that further hikes remain on the table”.<\/p>\n
The former RBA assistant governor said the final line of the board’s statement about being willing to increase the cash rate further if required, which was repeated by Ms Bullock in her press conference, was “unusual”.<\/p>\n
“It suggests that the [monetary policy board] wanted to hose down recent speculation that they are done hiking rates,” Dr Ellis wrote.<\/p>\n
\n“We therefore retain our view that further cash rate increases are coming.<\/p>\n
“If we are right that the June quarter result for trimmed mean inflation will again be strong, the next hike will come at the August meeting.<\/p>\n
“A longer pause is possible if the next few inflation prints are less alarming, but the direction of travel is still most likely up.<\/p>\n
“We expect it will take a further unexpected weakening in the domestic economy \u2013 and a better inflation outlook \u2013 to entirely prevent further cash rate hikes from here.”<\/p>\n<\/blockquote>\n
The RBA’s monetary policy setting board next meets August 10-11<\/b>.<\/p>\n
Tue 16 Jun 2026 at 4:52pm<\/p>\n
Tue 16 Jun 2026 at 4:52pm<\/p>\n
Market snapshot<\/p>\n
\n
- ASX 200: <\/b>+0.04% to 8,917 points<\/li>\n
- Australian dollar<\/b>: -0.3% to 70.52 US cents<\/li>\n
- Asia<\/b>: Nikkei 225 +0.1%, Shanghai Comp flat, Hang Seng -1.8%<\/li>\n
- Wall Street<\/b>: S&P 500 +1.7%, Dow +0.9%, Nasdaq +3.1%<\/li>\n
- Europe<\/b>: Dax +1.1%, FTSE -0.4%, Eurostoxx +0.1%<\/li>\n
- Spot gold:<\/b>\u00a0+0.3% to $US4,318\/ounce<\/li>\n
- Oil:<\/b>\u00a0Brent futures -0.5% to $US82.74\/barrel, WTI futures -0.3% to $U80.51\/barrel<\/li>\n
- Iron ore<\/b>: -0.5% to $US101.45\/tonne<\/li>\n
- Bitcoin:\u00a0<\/b>-0.1% to $US66,457<\/li>\n<\/ul>\n
Prices current at around 4:50pm AEST<\/p>\n
Live updates on the major ASX indices:<\/b><\/p>\n
Tue 16 Jun 2026 at 4:44pm<\/p>\n
Tue 16 Jun 2026 at 4:44pm<\/p>\n
NAB retains forecast for rates on hold before cut in 2027<\/p>\n
NAB <\/b>chief economist Sally Auld<\/b>\u00a0has issued her post-RBA note and has retained the bank’s forecast for the cash rate to remain on hold<\/b> in the months ahead, before easing in the first half of 2027<\/b>.<\/p>\n
That’s despite the continued emphasis of the RBA board on inflation.<\/p>\n
\n“With inflation taking precedence over growth for the time being, it is too soon to expect any dovish shift in the [central] bank’s broader narrative about monetary policy,” Ms Auld wrote.<\/p>\n
“Accordingly, we think it appropriate that the market retains some chance of tightening in the next few months.”<\/p>\n<\/blockquote>\n
Ms Auld said one positive development in the RBA board’s relatively concise statement was “the acknowledgement that some measures of inflation expectations have eased of late”.<\/p>\n
She described the statement as avoiding any characterisation of overall policy stance.<\/p>\n
\n“This buys the RBA some time to data watch and will be enough to keep the hawks at bay in the near term,” Ms Auld said.<\/p>\n<\/blockquote>\n
Tue 16 Jun 2026 at 4:30pm<\/p>\n
Tue 16 Jun 2026 at 4:30pm<\/p>\n
AI company Anthropic recruiting for Australian energy expert<\/p>\n
ABC Darwin reporters\u00a0Sam Parry<\/b> and Matt Garrick <\/b>have news on artificial intelligence company\u00a0Anthropic<\/b>.<\/p>\n
The AI firm is hiring<\/b> for the role of Data Centre Energy Lead, to be based in Sydney, as part of its expansion into Australia<\/b>.<\/p>\n
According to a listing on the company’s website, the role’s responsibilities include securing “multi-hundred-megawatt power capacity for AI infrastructure\u00a0across the National Electricity Market (NEM), Wholesale Electricity Market (WEM) and Northern Territory Electricity Market (NTEM)”.<\/p>\n
Yesterday, media reports emerged that Anthropic is in negotiations with ambitious solar firm SunCable <\/b>to power a large-scale data centre in the Northern Territory.<\/p>\n
The NT’s minister for corporate and digital development, Joshua Burgoyne<\/b>, told the ABC he was “aware of the proposal”, which he said “presents significant opportunities for the Northern Territory.”<\/p>\n
Both Anthropic and SunCable declined to comment <\/b>when asked to confirm negotiations were underway between the companies.<\/p>\n
Tue 16 Jun 2026 at 4:21pm<\/p>\n
Tue 16 Jun 2026 at 4:21pm<\/p>\n
ASX manages a positive finish \u2014 just!<\/p>\n
The local share market staged a recovery through the session.<\/p>\n
After falling in early trade, the ASX 200 <\/b>trimmed losses through the session, and then reached the flatline in the wake of the RBA’s decision.<\/p>\n
In the end, the benchmark index added 3 points to finish in positive territory<\/b>.<\/p>\n
ASX 200 (LSEG Refinitiv)<\/p>\n
The best performers were:<\/p>\n
\n
- Predictive Discovery +8.1%<\/li>\n
- Catalyst Metals +7.1%<\/li>\n
- Life360 +4.4%<\/li>\n
- Alkane Resources +4.3%<\/li>\n
- Temple & Webster +3.9%<\/li>\n<\/ul>\n
And the worst:<\/p>\n
\n
- Iperionx Ltd -13.8%<\/li>\n
- Karoon Energy -11.6%<\/li>\n
- Liontown -8.5%<\/li>\n
- Alcoa Corp -7.5%<\/li>\n
- IDP Education -4.6%<\/li>\n<\/ul>\n
Tue 16 Jun 2026 at 4:15pm<\/p>\n
Tue 16 Jun 2026 at 4:15pm<\/p>\n
\ud83c\udf99\ufe0fA rate hold \u2014 but will it last?<\/p>\n
After three rate hikes in 2026, the Reserve Bank has finally hit pause – leaving the cash rate unchanged at 4.35%.<\/p>\n
The board says inflation is “still too high” and that higher fuel prices are “passing through to the prices of other goods and services”, but decided to hold steady while it assesses the impact of earlier increases.<\/p>\n
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RBA Governor Michele Bullock (ABC News)Tue 16 Jun 2026 at 3:33pm<\/p>\n