November 7, 2023

Australia news LIVE: RBA hikes interest rates to 4.35 per cent; Xi says China and Australia have ‘worked out some problems’

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Pinned post from 2.56pm

Rate rise ‘will make life harder for people who are already doing it tough’: Chalmers

By Rachel Clun

Treasurer Jim Chalmers says he understands the rate rise will be difficult for mortgage holders, and that the government is doing its bit to reduce inflation.

“This will make life harder for people who are already doing it tough,” he said at a press conference following the RBA board’s decision to lift interest rates.

“Inflation has moderated in our economy since those peaks that we saw last year, and our economy has slowed. But inflation is still a feature of our economy.

Treasurer Jim Chalmers at a press conference last month.Credit: Alex Ellinghausen

“Now, the primary driver of inflation in the most recent data was petrol, but there are other inflationary pressures in our economy as well, [and] the Reserve Bank is responding to that.”

The treasurer said everyone wanted inflation to moderate further, and the government had the same goals as the Reserve Bank but a different job to do.

“The Reserve Bank’s job is to address this inflationary challenge without crunching the economy, I am focused on my job, which is a distinct and complimentary job when it comes to fighting inflation,” he said.

“Rolling out cost-of-living relief in a way that puts downward pressure on inflation, rather than add to our inflation challenge. We have got the budget in much better nick … [and] the first surplus in 15 years is part of that effort.”

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5.32pm

Tasmanian governnent lashes Plibersek over salmon industry warning

Tasmania’s premier has accused the federal government of trying to kill off the state’s salmon farming industry and the hundreds of jobs it provides.

Simmering tensions between the two governments erupted on Tuesday after federal environment minister Tanya Plibersek wrote to Premier Jeremy Rockliff warning of a possible pause to salmon farming in Macquarie Harbour.

The harbour is the only place on earth where the Maugean skate, an endangered ancient species, exists.

But experts warn the fish is on the brink of extinction, threatened by poor water quality mainly associated with salmon farming, but also other uses.

The Maugean skate only exists in parts of Tasmanian waters.Credit: Neville Barrett

In her letter to the premier, Plibersek expressed serious concerns about the industry’s plan to help the skate.

Conservation advice has said reducing salmon loads is the fastest and simplest way to fix the water quality problems but the industry has refused to do that.

Instead, it is planning a trial that will use a barge and pumps to oxygenate the harbour, hoping to offset what farmed salmon suck out.

Late this afternoon, Rockliff said his Liberal government would fight for the industry.

“I will not stand by and allow the federal Labor government to kill off our salmon industry and the more than 350 jobs that it supports.

“Our government backs our salmon industry 100 per cent.”

AAP

5.01pm

Air New Zealand flights face up to two years’ disruption

By Millie Muroi

Air New Zealand passengers face up to two years of disruption as the ASX dual-listed airline deals with a maintenance issue involving up to 17 of its aircraft and 700 engines globally.

The airline, which serves Australia, the Pacific Islands and domestic New Zealand, said on Tuesday that a condition affecting the maintenance plan of engine supplier Pratt & Whitney would lead to revisions in its flight schedule.

Air New Zealand chief executive Greg Foran said there were no safety concerns but noted it would affect his company’s 17 A320/321NEO aircraft, as well as 700 engines across other airlines globally over the next three years, with the effect most keenly felt in the coming year.

Read the full story here.

4.35pm

Albanese speaks on rate rise from Beijing

Prime Minister Anthony Albanese has just been asked about the rate rise during a press conference in Beijing.

“We need to be engaged because we know that impacts of the global economy on energy prices, for example, feed through into the Australian economy,” he said.

“That’s why a major focus of this visit has been on Australian job creation, on the benefit that we can get by dealing with the impediments to our trade, which have been there. We’re very focused on Australian jobs and the Australian economy and Australian living standards, which is why we continue to have as our number one priority cost of living relief.”

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4.10pm

Join the conversation

Peter Hartcher’s opinion piece on how Australia had a choice with China to kowtow or stand up and made the right call is sparking much debate with subscribers.

@jk says: “Good balanced approach by Albanese. It’s good to finally see Australia chart a right balance between the big powers to the benefit of Australians, just like Singapore and NZ. A reasonable and mutually respectful relationship between two countries.”

@Stratos writes: “This is the first chapter in a long book which will test our resolve for decades to come. Beijing plays the long game while we stumble our way through policy shifts from election to election. Not sure President Xi has reversed anything.”

Anthony Albanese greets China’s Chairman of the National People’s Congress Zhao Leji at the Great Hall.Credit: AAP

@Mick says: “Morrison could not have handled our fallout with China any worse if he tried. Let’s not pretend otherwise. It caused billions of dollars of damage to the Australian economy and the Liberal party should be reminded of this before every election.”

But @MacsDave has a different take: “About time a few journalists acknowledged the previous LNP government’s massive achievements in standing up to China in Australia’s national interest. Watching Albo and co in China with lobster in hand, getting praise for “repairing the relationship” speaks volumes re: the general public’s ignorance of the entire issue. It will be very interesting to see how Albo responds to a Chinese issue of the scale the previous LNP governments had to deal with (Huawei, list of 14 demands, Covid) … It looks like the Chinese have warmed him up nicely and following the Voice embarrassment, the Chinese would know that any damage to the China-Australia repair in relationship would be very damaging politically.”

What do you think? Let us know here.

3.36pm

How much will your mortgage repayments go up by?

Use our mortgage repayment calculator here to see what Tuesday’s increase of 25 points means for your repayments.

Enter your loan amount, the length of your loan, your existing interest rate, then click the +0.25 per cent rise for the latest hike to get your extra monthly repayment.

Illustration:Credit: Aresna Villanueva

Calculations are based on monthly fixed interest rate increases on principal loan amount excluding requisite monthly repayments, adjustments to repayment amounts, or additional repayment instalments.

3.24pm

Without A Fight wins the Melbourne Cup

Without A Fight has won the 2023 Melbourne Cup at Flemington today.

Sam Freedman, who trained Without A Fight with Anthony Freedman, said the result was “extraordinary”.

Without A Fight has won the Melbourne Cup.Credit: Channel 10

“He got him onto the rail from a wide gate, relaxed, swam him off and pretty confident probably the 800 metres he was travelling,” Freedman told Channel 10.

Meanwhile, Right You Are will be assessed by Racing Victoria’s veterinary team after failing to finish the race.

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3.03pm

Melbourne Cup begins

By Anthony Segaert

In other news, the Melbourne Cup is due to begin any moment.

You can follow our live coverage of the race here.

2.56pm

Rate rise ‘will make life harder for people who are already doing it tough’: Chalmers

By Rachel Clun

Treasurer Jim Chalmers says he understands the rate rise will be difficult for mortgage holders, and that the government is doing its bit to reduce inflation.

“This will make life harder for people who are already doing it tough,” he said at a press conference following the RBA board’s decision to lift interest rates.

“Inflation has moderated in our economy since those peaks that we saw last year, and our economy has slowed. But inflation is still a feature of our economy.

Treasurer Jim Chalmers at a press conference last month.Credit: Alex Ellinghausen

“Now, the primary driver of inflation in the most recent data was petrol, but there are other inflationary pressures in our economy as well, [and] the Reserve Bank is responding to that.”

The treasurer said everyone wanted inflation to moderate further, and the government had the same goals as the Reserve Bank but a different job to do.

“The Reserve Bank’s job is to address this inflationary challenge without crunching the economy, I am focused on my job, which is a distinct and complimentary job when it comes to fighting inflation,” he said.

“Rolling out cost-of-living relief in a way that puts downward pressure on inflation, rather than add to our inflation challenge. We have got the budget in much better nick … [and] the first surplus in 15 years is part of that effort.”

2.52pm

ASX remains weak on rate decision

By Millie Muroi

Banks and real estate investment trusts dragged the Australian sharemarket lower after the Reserve Bank raised interest rates this afternoon.

The S&P/ASX 200 remained mostly unchanged, dropping 14.2 points, or 0.2 per cent, to 6983.2 just after the Reserve Bank’s decision to lift the cash rate by 0.25 percentage points to 4.35 per cent at 2.30pm AEDT, with information technology and healthcare companies trading in the green.

All four big banks traded lower, weighing down the financial sector (down 0.8 per cent) with CBA shedding 0.3 per cent, NAB losing 0.8 per cent, ANZ dropping 1 per cent and Westpac slipping 2 per cent, the latter following a rally on Monday after it revealed a $7.2 billion profit.

Real estate investment trusts (REITS) were also weaker as Scentre (down 2.3 per cent) and Dexus (down 2.3 per cent) slid lower.

Other interest rate-sensitive sectors continued their climb despite the rate decision, with healthcare stocks (up 0.7 per cent) among the strongest on the local bourse including Pro Medicus (up 2.9 per cent) and Cochlear (up 1.3 per cent). IT stocks (up 1 per cent) were also stronger as heavyweight WiseTech advanced 1.9 per cent.

The Australian dollar dropped slightly, fetching $64.63 at about 2.40pm AEDT.

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2.48pm

Price of services rising while goods inflation is falling, Bullock says

By Rachel Clun

Bullock said the latest inflation data showed that while goods inflation was falling, the price of many services was continuing to rise.

“Since its August meeting, the board has received updated information on inflation, the labour market, economic activity and the revised set of forecasts,” she said.

“The weight of this information suggests that the risk of inflation remaining higher for longer has increased.”

It’s the first interest rate rise since June, when the bank lifted the cash rate by a quarter of a percentage point to 4.1 per cent.

Bullock noted the economy had also been more resilient than expected over the first half of the year, noting the unemployment rate remained low and house prices were continuing to rise.

She said whether the RBA would need to raise rates even further would depend on any new economic data and evolving risks, including developments in the global economy.

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