NSW Premier Warns Expected Rate Rise Will Cost Jobs and Close Shops
New South Wales Premier Chris Minns has warned that an expected interest rate rise will cause job losses and business closures. The Reserve Bank of Australia decides on Tuesday, with markets predicting the fifth increase of 2026.
New South Wales Premier Chris Minns has warned that an anticipated interest rate rise in Australia will lead to job losses and business closures. He urged both the federal government and the states to restrain spending to ease pressure on the economy. The comments add to the pressure on Prime Minister Anthony Albanese's government ahead of Tuesday's decision by the Reserve Bank of Australia, the country's central bank.
Markets expect the bank to raise its cash rate for the fifth time this year. A move to 4.85% would put rates at their highest level in 18 years.
Minns's warning
Minns, who has become more outspoken about his differences with Albanese, said raising rates was not a straightforward decision for the bank. He argued the effect on the state's economy would be massive: "There'll be jobs that go that will never come back. There'll be shops that close that do not reopen." Asked whether government spending adds to inflation, he said everybody needs to do their bit.
The government's position
Albanese and Treasurer Jim Chalmers have confirmed that next month's mid-year budget update will include a savings package. They point to international factors, including the war in Iran, as the cause of price rises. Environment Minister Murray Watt said inflation is a global phenomenon and that even a zero budget would not spare Australia from it. One Labor MP, speaking anonymously, said voter anger was already high.
Albanese will attend the Commonwealth leaders' summit in Antigua and Barbuda on Tuesday, so Chalmers will speak for the government.
Other reactions
ACTU secretary Melissa Donnelly told a demonstration outside the bank's Sydney headquarters that workers cannot survive another rate rise. Australian Council of Social Service chief executive Cassandra Goldie urged the bank not to raise rates. Opposition leader Angus Taylor accused the government of losing control of its spending.
The latest Newspoll put Labor's primary vote at 27%, behind One Nation on 28% but ahead of the Coalition on 21%.
