The Reserve Bank is set to raise the cash rate by 0.25 points to 4.85%—its highest in 18 years—as inflation stays high, adding hundreds of dollars monthly to typical mortgage repayments.
Reports reveal Labor’s medium-term budget outlook has a $170 billion gap, with savings from NDIS reforms and other measures falling short, leaving unexplained spending blowouts that economist Chris Richardson calls a ‘mystery money monster.’
Opposition figures blame government spending and policies like mass migration, while Labor points to global factors such as wars in Ukraine and the Middle East; Treasurer Jim Chalmers now faces pressure for big savings in the upcoming mid-year update.