Key facts
- Chris Minns said another rate rise would cost jobs in New South Wales that never return.
- Minns said the impact of another rate rise on the New South Wales economy would be massive.
- Markets predict a move to 4.85%, which would be the highest cash rate in 18 years.
- Anthony Albanese and Jim Chalmers confirmed next month's mid-year budget update will include a savings package.
- Angus Taylor accused the federal government of being unable to control its spending.
- A Newspoll put Labor's primary vote at 27%, behind One Nation on 28% and ahead of the Coalition on 21%.
Chris Minns, premier of New South Wales, said on Monday that an expected Reserve Bank of Australia rate increase would cost jobs and close businesses permanently, and called on the federal government and states to rein in spending. The Reserve Bank decides its cash rate on Tuesday, and markets predict a fifth increase in 2026, to 4.85%, which would be the highest level in 18 years.
Minns said the impact of another rate rise on the New South Wales economy would be massive. "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," he said, adding that the decision was not straightforward for the central bank. Asked about government spending adding to inflation pressure, he said everybody needs to do their bit.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers have confirmed next month's mid-year budget update will include a savings package, while pointing to international factors including the war in Iran as the cause of price rises. Albanese will be at the Commonwealth leaders' summit in Antigua and Barbuda on Tuesday when the rate decision is announced, leaving Chalmers to speak for the government.
Environment minister Murray Watt defended government spending on Monday, telling ABC radio that Australia is not the only country facing inflation pressure and that inflationary pressure would persist even if the government cut its budget to zero. Labor frontbencher Tanya Plibersek said the savings would be meaningful but would not hurt households.
ACTU secretary Melissa Donnelly told a demonstration outside the Reserve Bank's Sydney headquarters that workers cannot survive another rate rise, blaming big banks and supermarket giants for adding to pressure on households. Opposition leader Angus Taylor accused the government of losing control of inflation and interest rates, saying it cannot control its spending.
Monday's Newspoll put Labor's primary vote at 27%, behind One Nation on 28% and ahead of the Coalition on 21%. One Labor MP told Guardian Australia that voter anger was already high ahead of the decision.