The Reserve Bank of Australia is widely anticipated to lift the cash rate to 4.85% on Tuesday, marking the fifth increase of 2026. State leadership and union figures have urged governments to rein in spending rather than forcing the central bank to tackle price spikes through harsh monetary measures alone. In response to mounting criticism, Prime Minister Anthony Albanese and Treasurer Jim Chalmers confirmed that next month’s mid-year budget update will introduce a dedicated savings package.
Key points
State leadership warned that expected monetary tightening will lead to permanent commerci…: State leadership warned that expected monetary tightening will lead to permanent commercial closures and persistent job losses.
Community and union leaders contend that pushing interest rates near 5% will directly dri…: Community and union leaders contend that pushing interest rates near 5% will directly drive struggling Australians onto income support.
The federal government attributes high inflation to global issues like the war in Iran, w…: The federal government attributes high inflation to global issues like the war in Iran, while the opposition blames uncontrolled domestic spending.
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The NSW premier, Chris Minns, has warned an expected interest rate increase will force job losses and cause businesses to close, insisting the federal government and states should rein in spending to take pressure off the economy.
The intervention from the leader of the country’s biggest state will heap yet more pressure on the Albanese government ahead of the Reserve Bank of Australia’s cash rate decision on Tuesday.
Markets predict the bank will deliver the fifth rate rise in 2026. A move to 4.85% would bring rates to their highest level in 18 years.
Minns, who is increasingly outspoken on differences of opinion with the prime minister, Anthony Albanese, said increasing rates was not “a straightforward decision” for the RBA.
“The impact of another rate rise on the New South Wales economy will be massive,” Minns said.
“There’ll be jobs that go that will never come back. There’ll be shops that close that do not reopen with another rate rise.
“We can’t be flippant about this, this is a very, very tough call for them.”
The FTSE 100 experienced declines today as falling crude oil prices weighed heavily on the market. The downward movement in oil prices directly dragged down major oil companies, contributing to the broader index's losses.
Appointed liquidators are struggling to offload high-end assets confiscated by the Commercial Affairs Department as buyer turnout remains exceptionally low. Prospective bidders are hunting for steep bargains, but realistic guide prices and a hefty 60 percent additional stamp duty on foreigners continue to stall transactions. This mismatch leaves the majority of prime district listings unsold across consecutive liquidation attempts.
Alstom shares experienced a sharp decline today, falling by 27%. The specific reasons behind the steep drop in the company's stock were not immediately detailed.