Albanese government lacks a plan to ease inflation pain
Markets price 80% odds of another RBA rate rise, while Labor MPs grow frustrated over policy made without their input.
The Albanese government faces mounting pressure from rising inflation and global crises. The Reserve Bank may lift the cash rate to 4.85% next month, a level not seen since 2008.
Households suffer from these global forces but had no hand in causing them. Labor has blamed international factors, but voters want real solutions instead of explanations.
Caucus discipline is fraying as MPs defend budget decisions they had little say in. The government has tried energy rebates and fuel cuts.
Now all focus is on cutting public spending. Next month's mid-year economic update will test whether the government can show a clear path.
Treasurer Jim Chalmers and the prime minister appear at odds over how hard to cut, leaving the party fractured.
- More than 80 per cent
- Rate rise odds
- 4.85 per cent
- Expected cash rate
- 2008 global financial crisis
- Last seen
Why it mattersRising rates hit household budgets directly. Without visible solutions, Labor risks further voter backlash at the next federal election.
AustraliaAustralian mortgage holders and borrowers will feel the impact of a rate rise immediately. The government's struggling response could worsen their prospects.
✓ Claims checked against the source. checked 3 h ago
