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.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

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

Continue reading...

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.

Continue reading...

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.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

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.

Continue reading...

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.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

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.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

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.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

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.

Sign up for a weekly email featuring our best reads

Continue reading...

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

This blog is now closed

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.

Continue reading...

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.

Continue reading...

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.

Continue reading...

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.

Continue reading...

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.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Australia politics live: Qantas plays ‘hardball’ on workplace relations, Shorten says; Karen Andrews makes emotional speech on domestic violence

Liberal MP Karen Andrews addressed the International Day for the Elimination of Violence Against Women in parliament. Follow all the day’s news

Independents to launch report on whistleblower protections

Independent MP Andrew Wilkie has been arguing for more protections for whistleblowers for years. The attorney general, Mark Dreyfus, has proposed new laws to boost whistleblower protections, but there are still calls the law needs to go further.

Protecting Australia’s Whistleblowers: The Federal Roadmap draws on landmark research and synthesises three decades of reviews to outline a comprehensive, 12-step roadmap for better protecting and empowering whistleblowers.

Establishment of a whistleblower protection authority to oversee and enforce Australia’s whistleblower protections;

Upgraded whistleblower protections for Australian public servants in line with domestic and international best practice, including a positive duty to protect whistleblowers and steps to make it easier for whistleblowers to enforce their rights;

Consolidation and harmonisation of whistleblowing laws across the private sector in one new single law covering all non-public sector whistleblowers; and

Stronger, simpler protections for whistleblowers who make disclosures to the media and members of parliament.

The mortality ratios from Covid in Australia are quite similar to those estimated in other advanced nations. As a share of the population, fewer people died from Covid in Australia than in most other affluent nations. Yet among those who died, the same health inequalities can be seen in Australia as in other advanced countries.

What might have driven the socioeconomic disparities in Covid mortality? And why might many of those disparities have been largest in the Delta wave? As I have noted, disadvantaged people may be less able to work remotely, more reliant on public transport, and more likely to live in crowded households. Uptake of vaccination and antiviral treatments have varied across society as vaccines and treatment became increasingly available. Another factor is that successive Covid waves have had varying degrees of severity. A final factor is that in the years since Covid began, population immunity has steadily risen.”

Across all waves of the pandemic, deaths from Covid were highest among those aged 80‑89 years. The median age of those who died from Covid was 87.4 years for females and 83.6 years for males. Males had a higher number of registered Covid deaths than females. For every 100 female Covid deaths, there were 126 male Covid deaths. Around 3-quarters of all Covid deaths occurred in Victoria and New South Wales.

Continue reading...

Global shocks likely to drive more frequent interest rate changes, RBA says

Central banks will need to adjust rates more often to respond to unpredictable levels of inflation, Philip Lowe says

Inflation is likely to become more volatile in the future as globalism retreats and climate shocks mount, requiring central banks to adjust interest rates more often, the Reserve Bank governor has said.

Philip Lowe, in a Committee for Economic Development of Australia speech in Melbourne on Tuesday, said the current spike in prices was soon expected to peak at around 8% before declining to “a little over 3%” by the end of 2024. Improving post-Covid supply chains, cheaper commodities and the effects of interest rate hikes – with more possible – would combine to rein in inflation.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Interest rates to keep rising as RBA warns it will do ‘what is necessary’ to curb inflation

Reserve Bank governor Philip Lowe says half percentage point increases to cash rate possible if economic conditions do not improve

Interest rates will be rising for the foreseeable future and the Reserve Bank of Australia will not hesitate in making higher increases than predicted if inflation does not begin to settle, the RBA governor, Philip Lowe, has warned.

Tuesday’s seventh interest rate hike saw the cash rate increase by the standard quarter of a percentage point, taking rates to a nine-year high of 2.85%, and Lowe said the RBA board would not hesitate to move to half percentage point increases if economic conditions didn’t improve.

Sign up for our free morning and afternoon email newsletters from Guardian Australia for your daily news roundup

Continue reading...

Reserve Bank ‘consulting’ with government on whether King Charles should be on $5 note

RBA governor Philip Lowe says ‘monarch has been on at least one banknote since 1923’ but decision won’t be made until talks with Labor are complete

He’s on the throne but should he be on the fiver?

The Reserve Bank of Australia has begun consultations with the federal government to answer one of the burning questions following the death of Queen Elizabeth II – should King Charles III take her place on the $5 note?

Continue reading...

Australian borrowers hit again as RBA raises interest rates by 25 basis points to 2.85%

Reserve Bank raises rates for seventh time in attempt to bring inflation under control

Borrowers have been slugged with a record seventh rate rise from the Reserve Bank of Australia in as many months, as the central bank tries to quell the nation’s strongest burst of inflation in 32 years.

The RBA on Tuesday lifted the cash rate by 25 basis points to 2.85%, the highest since early May 2013. The increase was in line with most economists’ expectations.

Continue reading...

Treasurer says inflation ‘number one challenge’ – as it happened

We’ve been bringing you some of the news about rain causing more flooding in NSW. Here are some visuals from Wagga Wagga in southern NSW and the Newell highway in the state’s central west.

Jacinta Allan avoids question of whether families returned from Syria would be welcome in Victoria

The first group of families the wives and children of Islamic State fighters arrived in Sydney over the weekend from Syria and are now living in the community in Sydney. Will Victoria accept returnees?

I was with the premier [Daniel Andrews] on Sunday at a at a media event… where the premier was asked this direct question and I’ll give to you the answer he gave on Sunday which is these are very sensitive security matters. They are primarily the province of the federal government, it would not be appropriate -

As a matter of principle, will you accept them [in] Victoria? Or have you asked for them not to come during the election campaign?

We’ve not, Patricia. There is a … As I think we’ve seen from the media reporting around this issue, this is a very careful matter. There is a very -

Sure, but as a matter of principle, do you think returning citizens – they’re Australian citizens – should be allowed to live in Victoria?

I would really direct you to the federal government and the federal … I think you would appreciate that this is not a simple yes or no proposition because there needs to be robust and careful assessments that are not undertaken by the Victorian government. They’re undertaken by the federal government and the federal Department of Home Affairs.

And if they do all the checks and balances, should they be welcome in Victoria?

Firstly it’d be entirely inappropriate to cut across that and secondly, I am in no position to run a commentary.

Continue reading...