Interest rate hike looms as Albanese heads to Caribbean summit
Reserve Bank is tipped to raise rates to 4.85 per cent on Tuesday while the PM attends a Commonwealth leaders meeting.
Anthony Albanese leaves Saturday for the Commonwealth Heads of Government Meeting in Antigua and Barbuda. Albanese hopes to reset his image abroad while facing pressure at home.
The Reserve Bank is widely expected to raise interest rates to 4.85 per cent on Tuesday. The rise would be the fifth hike this year.
The timing puts his treasurer Jim Chalmers in a difficult position. He must manage the political fallout from higher rates while the PM is out of the country.
Albanese will also attend summits in Turkey, the Philippines, China and the US before year's end. Experts say the trip gives him a chance to refocus on his leadership amid domestic controversies over grants funding and inflation concerns.
- 4.85 per cent
- Expected rate
- Fifth
- Hikes this year
- Antigua and Barbuda
- Meeting location
- Treasurer Jim Chalmers
- Deputy at home
Why it mattersAnother rate rise will squeeze households already struggling with bills and mortgages. Chalmers must essentially explain the government's plan to voters who blame Labor for the cost-of-living squeeze.
AustraliaAustralians on mortgages and variable-rate loans face higher repayments; a fifth rate rise in one year signals the RBA still sees inflation as a problem despite pressure on household budgets.
✓ Claims checked against the source. checked 3 h ago
