CANBERRA, ACT, Sept. 29 -- The Treasurer of Australia issued the following media release:
Today the independent Reserve Bank increased the cash rate by 25 basis points.
The war in the Middle East is pushing up inflation and interest rates all around the world but that doesn't make it any easier for Australians.
Australian workers didn't choose this war, but they are paying a hefty price for it.
The war has been a disaster for the global economy.
The market is pricing in multiple rate rises in every major advanced economy.
While today's decision was widely expected and anticipated, that doesn't make it any easier.
As the RBA's statement made clear, the conflict in the Middle East is broadening and pushing up energy prices and inflation around the world.
The statement also highlighted the impact of AI‑related demand on global prices for technology‑related goods.
Inflation is much lower than its peak, but it is higher than we would like and the conflict in the Middle East is making inflation linger for longer.
We recognise people are under pressure and we're doing something about it by helping with the cost of living, whether it's through cheaper medicines, more bulk billed doctor visits, higher wages, or more tax cuts.
We're helping with the cost of living at the same time as we manage the budget responsibly and address Australia's long‑standing productivity challenge.
New figures out this week showed the budget position in 2025-26 was $6billion better than expected in May and the deficit was almost half of what we inherited.
Responsible economic management is a defining feature of this Government and particularly important at a time of heightened global uncertainty when higher global yields mean even more pressure on the budget.
We know it will take time to shift the dial on productivity, which is why the Budget had the broadest productivity package in decades.
When we came to office, inflation was north of sixpercent and rapidly rising, it's now much lower than that. Underlying inflation was almost fivepercent, it's now also much lower.
We're not immune from global pressures but we are better placed and better prepared to confront them, with the equal fastest annual growth compared to all major advanced economies, low unemployment, solid wages growth and much stronger public finances.
We're focused on taking pressure off Australians and addressing inflation while we build a more productive and resilient economy and manage global uncertainty, and today's decision shows why this is so important.
Disclaimer: Curated by HT Syndication.
