Treasurer denies interfering with RBA ahead of rate rise

From 46m ago 22.30 GMT Treasurer denies he’s interfering with RBA rates decision Chalmers denies he is “jaw-boning” the Reserve Bank of Australia (RBA) by pointing to improving economy conditions publicly ahead of an interest rate meeting on Tuesday. The treasurer denies he is “interfering” in a “factual way”. He says he is “pleased” to get the chance to respond to that claim because of “some, frankly, ridiculous commentary about this in recent days.” By the bizarre logic of some of that commentary, the treasurer of Australia is not allowed to comment on the Treasury’s forecasts for inflation on the day that the inflation figures come out? I mean, that is, plainly and frankly, ridiculous. Chalmers says Treasury “hasn’t changed its estimation or its expectation of when inflation will return back to the target band”. No doubt, they have been working through the inflation data and weighing that up against the evidence that our economy is slowing, and some of this global uncertainty, and they’ll make their decision independently. They’ve got a job to do. I’m focused on my job. Updated at 22.38 GMT Key events 46m ago Treasurer denies he’s interfering with RBA rates decision 1h ago Three dead in outback plane crash in Queensland 1h ago Speculation over Melbourne Cup Day interest rate rise 1h ago PM gets red carpet welcome in China 1h ago Good morning Filters BETA Key events (5) Jim Chalmers (7) China (6) Anthony Albanese (6) Australia (6) Guardian Australia (5) 4m ago 23.11 GMT Unpredictable conditions hammer WA firefighting efforts A Buddhist monastery, a prison farm and homes are under threat from a bushfire raging out of control south-east of Perth. Bodhinuana Buddhist Monastery and Karnet Prison Farm are under threat from the Serpentine blaze, which started during lightning storms near the Serpentine Dam, about 55km south-southeast of Perth. An emergency warning is in place, with those in the area warned to “act immediately to survive”. Emergency WA says unpredictable conditions on fire grounds across the state mean there is a risk to lives and homes. The WA government has called in a C-130 Hercules Water Bomber from NSW, which is due to arrive on Sunday to help control multiple fire fronts. A Bushfire Emergency Warning is also in place for parts of North Dandalup, Myara and Whittaker in the Shire of Murray where 270 hectares have been burnt. Numerous watch and act warnings and advice warnings are in place across WA. Temperatures in Perth peaked at 35C on Saturday and are predicted to reach 27C on Sunday. – AAP 22m ago 22.53 GMT Guardian Australia editor Lenore Taylor , responding to comments from prime minister Anthony Albanese about Israeli operations in Gaza , says any government “would feel the need to react to that humanitarian horror”. Albanese made comments earlier in this week saying “it is critical that this war does not expand into other theatres” and that “Israel needs to recognise that in the way it conducts itself because the images have been seen of the refugee amp, quite rightly, will cause enormous, enormous concern around the world.” Taylor: They do have to walk a narrow path here. But I think anyone looking at the evidence from Gaza, the pictures from Gaza, the stories from Gaza, any government would feel the need to react to that humanitarian horror. And our government has, in calling for this pause. I think it was also interesting – a piece that Penny Wong wrote for us over the weekend – where she started to talk about what might happen. Like, how this might actually be one day, somehow, resolved. And the ingredients that she said would be necessary were: The dismantling of Hamas, a reformed Palestinian Authority that disavowed violence, and Israel completely stopping establishing settlements in the occupied Palestinian territories. Now, that is, you know, Benjamin Netanyahu’s signature policy. That is what he’s about. So, the government is, sort of, now not just saying two-state solution but what could that look like, what would have to happen for that to be a reality? And I think that’s interesting as well. For more, read foreign minister Penny Wong’s editorial in The Guardian over the weekend: Penny Wong: Israel needs to listen to calls for restraint from its friends or it risks Gaza conflict spreading Read more Updated at 23.06 GMT 38m ago 22.37 GMT Chalmers closes off the interview by saying the “energy transformation” is absolutely central to our goals in this defining decade.” We’ve got to get it right. We’ve made good progress and we’ve got a bit more to do. And that’s a wrap. Updated at 22.41 GMT 39m ago 22.36 GMT The treasurer is asked about a speech he gave this week saying the government “ might not be on track to meet our net-zero ambitions” and that the government has to intervene in order to make it happen. We’ve got this ambitious but achievable targets when it comes to the energy transformation and we’ve got vast industrial and economic and employment opportunities which flow from our goals to be a renewable energy superpower. And we are making good progress across both of those fronts. But from my perspective as treasurer, what I tried to say is that what we need to do is not just to attract and commit more private and more public capital, but we need to be able to absorb and deploy that investment in the most efficient and effective way. And so some of the things that we need to consider as we work towards the next budget is to make sure we get the skills base, the technological base, the relationship with the states right as well. The treasurer is asked whether this necessitates “picking winners”. The mechanism is to apply what we would consider to be a new set of net-zero industry policy tests around supply chains and national security and value for money, and what’s best able to deliver our emissions reductions goals. And when you do that, some of these comparative advantages that Australia has become quite obvious. Updated at 22.40 GMT 42m ago 22.34 GMT Chalmers says he is “hoping” to announce the new deputy RBA government before the governing board meets again on 5 December. We have been consulting very, very closely with Michele Bullock because we need to make sure that the deputy is someone who can work closely with her but also complement some of these other appointments that she will make – the assistant governor economic, the chief operating officer. Updated at 22.39 GMT 43m ago 22.32 GMT Chalmers is asked about International Monetary Fund recommendations that states slash planned infrastructure spending to help control inflation. He says the IMF has “made an important point, which is that we need to roll out our infrastructure investment in a way that gets us value for money but also in a more measured and coordinated way.” The treasurer says the government is doing a review of infrastructure projects committed to by the previous government to address $33bn in cost blow-outs that have been identified. Updated at 22.39 GMT 46m ago 22.30 GMT Treasurer denies he’s interfering with RBA rates decision Chalmers denies he is “jaw-boning” the Reserve Bank of Australia (RBA) by pointing to improving economy conditions publicly ahead of an interest rate meeting on Tuesday. The treasurer denies he is “interfering” in a “factual way”. He says he is “pleased” to get the chance to respond to that claim because of “some, frankly, ridiculous commentary about this in recent days.” By the bizarre logic of some of that commentary, the treasurer of Australia is not allowed to comment on the Treasury’s forecasts for inflation on the day that the inflation figures come out? I mean, that is, plainly and frankly, ridiculous. Chalmers says Treasury “hasn’t changed its estimation or its expectation of when inflation will return back to the target band”. No doubt, they have been working through the inflation data and weighing that up against the evidence that our economy is slowing, and some of this global uncertainty, and they’ll make their decision independently. They’ve got a job to do. I’m focused on my job. Updated at 22.38 GMT 49m ago 22.26 GMT Chalmers says convincing the Chinese government to lift restrictions is “not the primary purpose” of the PM’s visit this week. He says the Australian government has made “good progress” so far with “95% of them (by dollar value) have been lifted” and would like to see the remaining restrictions lifted, but the priority is a thawing of relations. This week is part of a bigger and broader effort to stabilise a really important economic relationship, and we’ve seen some of the fruits of that already. Updated at 22.38 GMT 52m ago 22.24 GMT Treasurer Jim Chalmers says the prime minister’s official visit to China is not without challenges but is critical to a “prosperous relationship” between the two countries. It’s the first official visit by a prime minister into China since 2016 and I think it recognises that this – a stable relationship – is in the interests of both countries. Now, we are clear-eyed about the complexities and the challenges of managing this relationship. But we give ourselves the best chance of prospering together if we engage with one another. And we’ve already seen some of the fruits of that effort – something like 95% of the trade restrictions by dollar value have been lifted. That’s good for our businesses, our exporters, and our workers. And that’s why it’s so important that this engagement has been happening for some time and why it’s so important that this official visit is taking place this week. Updated at 22.32 GMT 54m ago 22.22 GMT Guardian Australia’s editor, Lenore Taylor , says the prime minister’s visit to China is based in “realism” and not any sense of gratitude. I think this is a sort of rapprochement based on realism. As [ Katharine Murphy ] was saying earlier, from China’s point of view, they haven’t changed their long-term strategic or economic goals. And neither have we changed our strategic allegiances. But it suits both sides for lots of reasons to get the trade relationship flowing again, to get the economic relationship flowing again, and to be talking again. And that’s what this visit is going to achieve. Taylor says that should anything happen, “having ties, having a dialogue and having economic ties is going to put you in a slightly better position to deal with it, than if that’s not the case.” Appearing on ABC Insiders this morning, Guardian Australia’s editor Lenore Taylor (second left) said the prime minister’s visit to China was based in ‘realism’ and not a sense of gratitude Photograph: ABC Insiders Updated at 22.28 GMT 1h ago 22.18 GMT Treasurer Jim Chalmers is speaking to ABC Insiders host Patricia Karvelas , who is filling in for David Speers , this morning. Guardian Australia’s editor, Lenore Taylor , is also on the couch. We will bring you all the latest as it happens. 1h ago 22.17 GMT Guardian Australia’s political editor Katharine Murphy is speaking to ABC Insiders host David Speers in Shanghai about prime minister Anthony’s Albanese’s visit to China – the first in seven years. She says that this visit is a “capstone” of a de-escalation in tensions between Australia and China that occurred under the leadership of the Coalition government led by Scott Morrison . This visit represents an opportunity to “put the relationship on a new footing”. There’s nothing in this relationship that’s simple. We’ve been in this de-escalation phase. I think the test, really, of whether we’ve got a genuine rapprochement here or if we’re on a new footing is what happens when there is a substantial public disagreement between the two countries, which we sort of haven’t really been at that point yet. So, I think that will be the test about whether or not we’re genuinely in new territory or whether this has been a blip. Murphy says the prime minister is seeking a “personal connection” with Xi Jinping to help prevent “a miscalculation or misunderstanding that could be catastrophic for Australia and the world”. Updated at 22.30 GMT 1h ago 22.09 GMT Three dead in outback plane crash in Queensland Three members of an aerial firefighting crew have died after their light plane crashed in remote northwest Queensland . A member of the public raised the alarm about 2.30pm on Saturday, reporting the crash near a mine site northwest of McKinlay, near Cloncurry. Police said a rescue helicopter crew spotted the wreckage and officers arrived on the scene about 5pm, confirming all three on board had died. Queensland Fire and Emergency Services (QFES) said the aircraft had been engaged to conduct line scans and was travelling from Toowoomba to Mount Isa when it crashed. Queensland premier Annastacia Palaszczuk and fire and emergency services minister Mark Ryan released a statement on Saturday night expressing their sympathy to the family, friends and colleagues of the crew. The three had been playing a critical role in saving lives and protecting property by their intelligence and mapping work from the air to help firefighters on the ground, Palaszczuk said. I am terribly saddened by what has happened. The crew on board this aircraft have been doing everything they could to protect Queenslanders. I send my heartfelt condolences to the many people who have been impacted by this shocking incident. QFES said the aircraft that crashed was the same type as one that is used as the lead plane for the large aerial tanker (LAT), used to fight bushfires. Prime minister Anthony Albanese praised the firefighters’ bravery. All Australians’ thoughts are with the family, friends, and all who know the brave firefighters who’ve lost their lives as a result of the fatal air accident that occurred in North Queensland. We know the people who fight fires and stand up in emergency services, risk their lives, each and every day to assist their fellow Australians, and to assist the communities. Today our hearts go out to them. – AAP Updated at 22.17 GMT 1h ago 22.09 GMT Auction activity has risen slightly this weekend with 2,015 auctions held. This is substantially lower than the 3,381 auctions held last week but a little above the 1,917 auctions that occurred at the same time last year. Based on results collected so far, CoreLogic’s summary found that the preliminary clearance rate was 68.6% across the country, which is roughly equivalent to the 68.5% preliminary rate recorded last week but higher than the 62.9% actual rate on final numbers. Across the capital cities: Sydney : 842 auctions held so far with a clearance rate of 71.9% Melbourne : 362 auctions with a clearance rate of 60.8% Brisbane : 102 auctions with a clearance rate of 68.6% Adelaide : 107 auctions with a clearance rate of 74.8% Canberra : 96 auctions with a clearance rate of 67.7% Tasmania : Three of four auctions held. Perth : Eight of 18 auctions held. 1h ago 22.08 GMT Speculation over Melbourne Cup Day interest rate rise Borrowers could be whacked with another round of interest rate pain following the central bank’s Melbourne Cup Day monetary policy meeting. The Reserve Bank of Australia gathering on Tuesday follows the recent release of a firmer set of inflation data, which fanned the case for a 13th interest rate hike since May 2022. Economists at all of the big four banks are tipping a 25 basis point increase, which will lift the key cash interest rate to 4.35%. The RBA has left the cash rate on hold for the past four months while repeatedly warning it might need to keep jacking up interest rates if still-high inflation does not fall fast enough. Governor Michele Bullock last month made it clear the board’s tolerance for a slower return to the bank’s preferred two to three per cent target band – against its 2025 forecast – is low. Bullock has made it clear “we might need to go again” and raise interest rates. Her warning was followed by a hotter set of inflation numbers that cast doubt over the expected timeline. Headline inflation rose 5.4% annually in the September quarter – well below the 7.8% peak in December – and was far above the target range. Signs of resilience in the labour market and household spending, plus rebounding property prices, will only add to the case for more tightening. – AAP Updated at 22.17 GMT 1h ago 22.08 GMT Katharine Murphy Central Shanghai was locked down for the prime minister’s arrival on Saturday night. Predictably, security was tight. As we were whisked through the streets, there was no sign of hordes of young people who, reportedly , took to the streets during Halloween to express both themselves and their frustrations with life in the People’s Republic. I haven’t been to this part of China for thirty years, so I’m astonished by the growth and the prosperity I can see out the window of a speeding motorcade. The country feels almost unrecognisable to me. But China has endured significant challenges in recent years. China is out of its high-growth phase. There’s looming demographic challenges. There are high rates of youth unemployment. The pandemic imposed massive economic and social challenges for the leadership, and China’s aggressive foreign policy strategy hasn’t delivered quite what the regime intended. This is clearly a period of transition in the country. Prime minister Anthony Albanese recieves a gift from young Yang Xingcheng on his arrival at Shanghai’s Hongqiao airport at the weekend. Photograph: Lukas Coch/EPA When Anthony Albanese returned from the banquet on Sunday night, he told reporters he intended to “cooperate with China where we can, disagree where we must, but we will also engage in our national interest.” The prime minister said Australia’s national interest was served by having a positive, constructive, respectful and open dialogue with its biggest trading partner. That’s what I hope to achieve over the coming days. Albanese noted one in four jobs in Australia was “trade dependent”. On Saturday, before he left Australia, the prime minister said the visit “in itself” was a positive development given the turbulence in the relationship in recent years. Albanese was also asked what he would say to China’s premier and president about the writer, Yang Hengjun , who has been detained for four years. Albanese said: I’ll be saying that Dr Yang’s case needs to be resolved. And I’ll be speaking about his human rights, the nature of the detention and the failure to have transparent processes. Just as we stood up, I’ve raised this issue before, we will always raise the issues of Australian citizens when we meet with international leaders. That is something that we do consistently, and I will do it again in a way that is aimed at achieving an outcome in the interests of Dr Yang and his family. Updated at 22.23 GMT 1h ago 22.07 GMT PM gets red carpet welcome in China Katharine Murphy Good morning from Shanghai. Anthony Albanese arrived in the Chinese city last night. Shanghai is the opening sortie of the prime minister’s three day visit to China – the first by an Australian prime minister since 2016. If you want to read a detailed news preview of the trip, you can find that here . My column yesterday also set out the context for the visit, and reprised some history. Albanese’s visit to China is timed to coincide with the 50th anniversary of Gough Whitlam’s visit to the country in 1973. You can read the column here . On Saturday night, Albanese was greeted at Hongqiao airport by Australia’s ambassador to China, Graham Fletcher, the Chinese ambassador to Australia, Xiao Qian , and a vice-mayor of Shanghai, Xie Dong . A young girl, Yang Xingcheng , presented Albanese with a bunch of flowers. In brief remarks to traveling journalists, Albanese said it was very good to be in Shanghai, and he looked forward to the visit. The prime minister was then whisked away in a motorcade to attend a banquet hosted by China’s premier Li Qiang ahead of the opening day of the China International Import Expo on Sunday. The expo will be hosted by China’s commerce minister Wang Wentao. A number of Australian companies will be present – including Lark Distillery, Tamar Valley Fruits, Blackmores and Sanitarium. Albanese will visit the expo, mingle with business leaders and attend a reception hosted by Tourism Australia on Sunday afternoon. The prime minister will depart for Beijing on Sunday evening. On Monday, Albanese will meet China’s president Xi Jinping in the Great Hall of the People. For more on this story, read the full report: Albanese arrives in China for landmark visit, says it’s in ‘our national interest’ Read more Updated at 22.25 GMT 1h ago 22.07 GMT Good morning And welcome to another Sunday morning Guardian live blog. Australian Prime Minister Anthony Albanese has woken up in Shanghai this morning as he begins a critical trip to meet with Chinese in Xi Jinping on Monday. The move is being watched closely for what it means for the future of Australian exports, and the country’s international relations. The prime minister faces a delicate balancing act between the growing ambitions of China, Australia’s biggest trading partner, and the US, Australia’s biggest ally, in the Pacific. There is also a sense of hope for Australian industry, which has been left frustrated after successive years of punitive sanctions on exports imposed after relations soured under the previous Coalition government. I’m Royce Kurmelovs and I’ll be taking the blog through the day. With that, let’s get started … Explore more on these topics Australia news Anthony Albanese Australian politics Queensland Australian economy Housing Reuse this content

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