NSW Premier Chris Minns has issued a stark warning about the potential fallout from an expected interest rate hike by the Reserve Bank of Australia (RBA). With the RBA set to announce its cash rate decision on Tuesday, markets anticipate a fifth rate rise in 2026, pushing rates to 4.85%, the highest in 18 years. Minns cautioned that such a move could lead to irreversible job losses and business closures, stating, "There’ll be jobs that go that will never come back. There’ll be shops that close that do not reopen with another rate rise."
The premier’s comments add to mounting pressure on Prime Minister Anthony Albanese’s government ahead of the RBA’s decision. Minns urged both federal and state governments to rein in spending to ease economic strain, while Albanese and Treasurer Jim Chalmers have attributed inflation to global factors, including the war in Iran. The government plans to unveil a savings package in next month’s mid-year budget update.
Internally, Labor MPs express growing frustration over the government’s economic management, with one comparing the current political climate to the tough polling slump faced before the 2025 election. Meanwhile, opposition leader Angus Taylor accused the government of losing control of inflation and interest rates, claiming, "We’re seeing a Labor government that can’t control its spending."
Critics, including the ACTU secretary Melissa Donnelly and Australian Council of Social Service CEO Cassandra Goldie, have urged the RBA to hold off on rate hikes, warning of potential unemployment spikes and inadequate income support. The latest Newspoll shows Labor’s primary vote at 27%, trailing One Nation on 28%, but still ahead of the Coalition on 21%.