Gallagher defends Labor’s economic record as Reserve Bank lifts rates again

Australia’s central bank raised interest rates for the fifth time this year, prompting Finance Minister Katy Gallagher to defend the Albanese government’s economic management. She said Labor’s savings and other work were already reflected in economic data, while acknowledging that households and businesses were under severe pressure.

The Reserve Bank lifted the cash rate to 4.85 per cent, an 18-year high and the 17th increase since Labor took office. For a typical mortgage, repayments are now estimated to be about $584 higher each month, or nearly $7,000 a year; on an average $731,000 loan, each quarter-point rise adds around $114 monthly. Prime Minister Anthony Albanese said his government would make responsible decisions but would not cut funding for health or schools, while critics called for governments to rein in spending.