Australia’s annual inflation eases to 7.4% in January following record run of interest rate hikes

Lower than expected inflation rate suggests worst of the price increases may be over

Australia’s annual inflation rate in January eased, implying the worst of the price increases may be over as the economy absorbs a record run of interest rate hikes.

The consumer price index for the month was 7.4%, compared with 8.4% for December alone, the Australian Bureau of Statistics said on Wednesday. Economists had been predicting the January CPI would be 8.1%.

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Wage growth surprise: slower-than-expected gain eases RBA rate rise fears

December quarter wage index rose from 3.1% to 3.3%, but 7.8% inflation indicates a 4.5% decrease in real wages

Australian salaries increased at a faster pace in the December quarter in a tight labour market, but not enough to prevent the gap with inflation widening to a record level.

The wage price index (WPI) for the final three months of 2022 came in at 3.3%, an increase on the 3.1% pace in the September quarter and the highest since the end of 2012. Economists had forecast a 3.5% increase.

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MP gives first speech to parliament – as it happened

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Energy ministers to meet on Friday as regulator updates forecasts

Summer is almost done (according to the calendar) and we managed to get through it without significant electricity shortages. A heatwave building across southern Australia in coming days will add some extra demand.

I mean, yes, in nine months have we fixed every single reliability gap for the next decade? No, there’s more work to do.

Am I pleased with what we’ve done? Yes. Am I yet satisfied? No.

You know that this report normally comes out once a year or so, this is a report which has been put out in a much more rapid timeframe because Aemo has reached the view that the guidance they provided last August is out of date because we’ve seen a lot more investment coming through with renewable.

So the sorts of decisions we are making across the board are making a difference on that sort of a timeframe, I expect Aemo will provide further updates.

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Guardian Essential poll: most think RBA rate hikes an overreaction as shine comes off Albanese

Majority believe government at least partially to blame for rises but don’t assume Coalition would manage them better

A majority of voters believe the Reserve Bank of Australia has overreacted in jacking up interest rates to tame inflation, and people worry economic conditions will get worse over the next 12 months, according to the latest Guardian Essential poll.

The latest survey of 1,044 voters demonstrates cost-of-living pressure is starting to bite in the community after nine consecutive cash rate hikes.

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Dozens re-detained after visa cancellation bill passes – as it happened

Special legislation passed by the Albanese government with Coalition support. This blog is now closed

Marles says Australia able to track balloons

The defence minister, Richard Marles, says government would have capability to track a balloon if one was to appear over Australia as it did in the US a couple weeks ago.

Well, I think it’s important that this statement’s been made by the president to clarify the circumstances. There’s obviously been a particular fascination about balloons over the last month given the original spy balloon that we saw over the United States. I think from an Australian point of view, what’s important to say is that we’ve had no advice of any balloon of that kind being over Australia but we very much do have the capability to track such an object if there was one-to-and to deal with it.

Look, human rights matter and need to be central in the way we engage with the world. For this government, we will always call out human rights concerns where we have them and we’ve done that in respect of Xinjiang and the Uyghur population. I’ve done it publicly in China.

It forms part of the way in which we speak with China in our relationship. I think it’s also important, though, that in doing that, you know, be we raise those issues in a respectful way with China and in the context of the broader relationship and in the context of seeking to take steps which actually make a difference and it is important that we are stabilising our relationship with China.

There is no room for any harmful practices in NSW, particularly if they affect our young and vulnerable.

When the parliament returns, my government will provide in principle support for legislation that brings an end to any harmful practices. This is a complex matter and in working through it with parliamentary colleagues we will carefully consider the legal expression and effect of such laws.

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The RBA’s ‘narrow path’ on inflation and interest rates: six things we learned from Philip Lowe

When the governor and colleagues faced the economics committee, rates were the focus – how high will they go, and will they stall the economy?

Reserve Bank governor Philip Lowe and fellow senior executives fronted the economics committee of the House of Representatives on Friday for about three hours.

Here are six things we learned.

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More light and less heat would be appreciated at Philip Lowe’s next grilling on Friday

Lost in the questioning from hostile senators was much insight into why the Reserve Bank wants to keep raising rates

There’s no doubt the Reserve Bank governor Philip Lowe’s appearance before Senate estimates on Wednesday was good theatre.

Dubbed by one media outlet as Australia’s “most-loathed banker”, Lowe parried questions from mostly hostile senators demanding to know why the central bank had inflicted a record nine interest rate rises in a row, with more to come.

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Australia politics live: Philip Lowe says RBA ‘still unsure’ how high interest rates will go during Senate estimates grilling

RBA boss tells Senate estimates about rationale for rate rises as Adam Bandt demands end to new coal and gas projects. Follow live

Around and around we go …

So CBA shareholders are to get a (fully franked) dividend of $2.10 for each of their share – 20% more than the last time dividends were sent out.

We reported strong financial and operational performance in our financial results for the six months ended 31 December 2022. Our cash net profit after tax of $5,153 million reflects the Bank’s customer focus and disciplined strategic execution. Our continued balance sheet strength and capital position creates flexibility to support our customers and manage potential economic headwinds, while delivering sustainable returns to shareholders. A fully franked interim dividend of $2.10 per share was determined, an increase of 20% on 1H22, driven by organic capital generation and a reduction in share count from share buy-backs. Despite the current uncertainty, your Board and management feel optimistic for the future and are committed to delivering for our customers and for you, our shareholders

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Philip Lowe says interest rate rises painful but for the best, predicting more to come

Inflation is dangerous, corrosive and hurts people, RBA governor tells Senate estimates

The Reserve Bank governor, Philip Lowe, says he has heard about the personal pain caused by soaring interest rates with a “very heavy heart” – but tackling “dangerous” inflation was critical even if the moves were unpopular.

Lowe, making his first public appearance for 2023 before Senate estimates on Wednesday, reiterated the challenges of achieving a “fairly soft landing” for the economy with unemployment rising only to 4.5% during next year.

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Four questions the RBA and Philip Lowe may face during grilling from MPs

Further rate rises, Reserve Bank strategy, transparency and whether to extend Lowe’s term are likely to come under scrutiny

When Philip Lowe fronts Senate estimates on Wednesday and the House of Representatives’ economics committee on Friday, the governor of the Reserve Bank of Australia will be peppered with questions about the central bank’s performance and thinking.

Here are four key issues he and his RBA colleagues will likely be asked about during the review of the central bank.

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Australia politics live: Inland Rail review reveals ‘significant concerns’; senator asks if MPs’ phones safe from hackers

Critics of project left frustrated and ‘ignored’ by previous government’s failure to heed views of regional communities. Follow the day’s news live

Joyce v Plibersek

Can there be a greater punishment than being the Labor MP chosen to “debate” Barnaby Joyce on commercial TV each week?

Well this Treasury analysis shows that price rises will be moderated, they won’t go up as much as was initially predicted and that’s because our policies are working, and it’s a shame that Barnaby and his side actually voted against the policies that have brought down energy prices in Australia, on top of not doing anything when they were in government to prepare for these energy price rises.

But we know that families are still doing is tough and that’s why we’re also delivering cheaper medicine, cheaper childcare, free Tafe and higher wages.

Well, you just heard it there. It’s the great swindle. Remember they said they were going to bring down the price of electricity by $275. Now they’re lauding the fact that it’s still going up and it will continue to go up, and at some time in the future, listen to this, it won’t go up as much as they expected it to. Now if you think that is worth banking, good luck.

As everything, you will see Liddell get blown up* and this will be under the Labor party’s watch, another power station literally blown up, another restriction on power supplies as we reduce supply and increase price. And I don’t see anything marvellous happening in the future except a Labor party which thinks that the way to fix power prices is to cap the two evils. Remember they don’t believe in coal or gas, but they do believe in capping it because they do understand all of a sudden that it is absolutely connected to power prices.

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Jim Chalmers confident Australia will avoid recession despite warnings of more interest rate rises

The treasurer also noted ‘very encouraging’ signs on power prices falling, saying Labor’s energy price relief package was working

The treasurer Jim Chalmers says there are “very encouraging” signs on power prices falling and is still confident Australia will avoid a recession despite continuing interest rate rises.

Last week in its first meeting for the year, the Reserve Bank increased the cash rate for the ninth time in a row to 3.35% and warned it was considering even more interest rate rises in coming months.

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Reserve Bank causing households ‘too much pain’ with rate rises, says union chief Sally McManus

Australian union leader says the absence of labour market expertise on the RBA board had caused ‘missteps’

The head of Australia’s union movement has blasted the Reserve Bank and its governor for a lack of “understanding” that rate rises are causing “too much pain” and low income earners have exhausted savings.

The Australian Council of Trade Unions secretary, Sally McManus, made the comments on Thursday after a ninth interest rate hike – and suggestions more increases will follow – sparked fears monetary policy could be tightened too far, risking recession.

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Interest rate hikes trigger Australian housing market’s biggest decline in 40 years

But market is unlikely to have bottomed out, with further cash rate increases from 3.1% likely to continue driving prices lower in 2023

The Reserve Bank’s aggressive rate-hiking cycle has triggered the housing market’s biggest decline in more than four decades.

The 8.4% drop between May 2022 and January 2023 is the deepest peak-to-trough fall on CoreLogic’s records, which date back to 1980.

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Record falls for Sydney and Melbourne housing in 2022 – but prices remain above pre-Covid levels

Rents increased by 10.2% nationally, CoreLogic says, despite the decline in home prices

Sydney, Melbourne and Hobart posted record annual falls in property prices in 2022 as higher interest rates sapped demand and amounted to the largest national decline since the global financial crisis, industry analysts say.

However, rent increases were “virtually off the charts” rising an average of 10.2% nationally.

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Union fury over Labor decision to split aged care pay rises – as it happened

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Crossbench say Australia needs to ‘get cracking’ on Cop15 commitments

More reactions are coming in after the close of the biodiversity Cop15 – which leading scientists have called vastly more important” than the Cop27 climate meeting, because it decides the “fate of the living world”.

We need to get cracking on implementation to deliver on commitments.

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Australia news live: treasurer says full impact of interest rate rises still to come as RBA flags further hikes

The central bank has raised the cash rate by 25 basis points to a decade high of 3.1%. Follow the day’s news

Shorten confident solution will be found ‘well before Christmas’

The national cabinet meeting was supposed to see the federal government negotiate with the states on an acceptable intervention on soaring energy prices.

It will be delayed just a few days. The fact of the matter is all options are on the table.

It’s no secret with the premiers, the challenge is Putin’s war in Ukraine has flowed through to coal and gas prices all around the world and it’s affecting Australian families.

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RBA interest rates: Reserve Bank raises official cash rate to 3.1%, the eighth increase in as many months

More pain for borrowers with interest rates to rise again after central bank lifts cash rate 25 basis points to the highest level since the end of 2012

Hopes for a “Santa pause” on interest rates have been dashed with the Reserve Bank lifting borrowing costs for a record eighth time in as many months at its last meeting for the year.

The RBA on Tuesday raised its cash rate 25 basis points. Most economists had expected the quarter point increase to 3.1%, the highest level since the end of 2012.

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RBA tipped to lift cash rate again at board meeting as mortgage cliff looms

Economists widely predict 25 basis point rise but some say central bank may consider pausing rates after seven straight hikes

The Reserve Bank is likely to give serious consideration to pausing interest rates for the first time since it began its record series of hikes, analysts say, but economists are still predicting an eighth consecutive increase when the board meets on Tuesday.

Concerns about the lagging effects of seven rate rises in as many months will be part of discussions at the monthly gathering. So, too, will the looming “mortgage cliff”, with at least $270bn in housing debt coming off historically low fixed-interest rates next year.

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Reserve Bank review to consider changing inflation target and board selection

With the RBA challenged by the pandemic, surging inflation and calls for reform, one expert says its recent report card has been ‘mixed’

The Reserve Bank review is assessing calls for changes to the central bank’s inflation target, the selection of board members and how authorities should manage shocks from asset bubbles to the climate crisis.

The review, launched in July with a reporting deadline for next March, has received more than 114 submissions, interviewed 230-plus people and surveyed almost 1,100 current and former RBA staff, the panel told a CEDA briefing in Sydney on Thursday.

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