The Reserve Bank of Australia increased the cash rate to 4.6 per cent—its highest level since 2011—prompting political criticism from Pauline Hanson, who called for Treasurer Jim Chalmers to resign. Hanson accused the government of breaking promises and failing to control inflation, arguing the increase would intensify financial hardship for Australian households already struggling with rising living costs.

The Reserve Bank's board unanimously approved a 25 basis point rate rise on Tuesday, continuing its efforts to combat persistent inflation. In response, Chalmers defended the government's economic record, acknowledging responsibility for inflation-fighting through disciplined budget management and reduced public spending growth, whilst highlighting international factors such as Middle East conflict as significant contributors. Hanson proposed One Nation's "super pay boost" policy, which would allow Australians to access up to 25 per cent of compulsory superannuation contributions as take-home pay for up to three years, potentially providing working families with approximately $82 additional weekly income after tax.