If the central bank enacts the widely anticipated 0.25 percentage point rise to 4.85%, it will represent the fifth rate hike delivered this year. Treasurer Jim Chalmers emphasized that while the decision remains independent, additional tightening will inevitably deepen existing household hardships. In response to these fiscal challenges, the federal expenditure review committee is actively meeting this week to evaluate economic forecasts and spending options ahead of December's budget update.
Key points
Federal leadership stressed that the full economic consequences of previous interest rate…: Federal leadership stressed that the full economic consequences of previous interest rate rises have yet to be realized.
Households already dealing with severe financial pressures will face even harder conditio…: Households already dealing with severe financial pressures will face even harder conditions if borrowing costs climb again.
The government is focusing on tightening the national budget before issuing its formal mi…: The government is focusing on tightening the national budget before issuing its formal mid-year fiscal update in December.
Sources checked by our analysis pipeline: 1
Asked why Labor can’t guarantee it won’t find net savings in the mid-year budget update, Chalmers told RN the government is undertaking that task this month ahead of December’s release.
We are currently working our way through the spending pressures, the economic forecasts, and the savings options to come up with the best, most responsible budget update that we can.
There have been savings in all eight of our budget updates so far. There’ll be savings in the ninth as well.
The powerful expenditure review committee met on Monday, and will convene again on Wednesday to discuss savings, Chalmers said.
Chalmers says Australians bracing for 'difficult decision'
Tess Ikonomou
Treasurer Jim Chalmers told ABC’s RN Australians are bracing for a “difficult decision” ahead of an expected rate hike.
Another rise would likely increase the cash rate to 4.85%, taking it to the highest level in 18 years.
People are under substantial pressure already, and obviously, if rates go up today, that will make things much harder, especially when there are already a number of rate rises in the system and…
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