Live: Canavan says rate hike could be 'straw that breaks the camel's back'

Matt Canavan says a further interest rate hike could be the "straw that breaks the camel's back" for families, blaming government spending for inflation. Follow all the updates in our live blog. Tue 29 Sep 2026 at 7:45amTue 29 Sep 2026 at 7:45amChalmers says he doesn't want to see workers 'carry the can' for overseas decisionThe treasurer says he doesn't want to see higher unemployment as the expense of lowering stubborn inflation in the economy.The Reserve Bank of Australia is expected to increase interest rates today, which could bring it to the highest cash rate in 15 years.Speaking to ABC Radio National Breakfast, Jim Chalmers says he doesn't think inflation in out of control.He's added that maintaining low unemployment and lower inflation are "two important objectives" for the federal government."I don't want to see Australian workers carry the can for decisions which are being taken on the other side of the world to prolong a war which has been absolutely disastrous from a cost of living point of view and from an economic point of view," Chalmers says.Tue 29 Sep 2026 at 7:36amTue 29 Sep 2026 at 7:36amTreasurer defends level of government spendingJim Chalmers has defended the level of government spending ahead of today's interest rate decision from the Reserve Bank of Australia.Yesterday's Final Budget Update showed forecast tax receipts as a percentage of GDP (that's the amount the government collects from taxpayers) jumped from May's forecast of 23.6 to 24.1.Asked on News24 why spending is forecast to grow to that level, Chalmers has pointed to other figures showing spending as a share of the economy has reduced under Labor."Spending as a share of the economy is very substantially lower than when we came to office, it was lower still in nominal terms in the budget outcome that we released yesterday and that's because we've been banking upward revisions to revenue," Chalmers says.Tue 29 Sep 2026 at 7:24amTue 29 Sep 2026 at 7:24amChalmers says there's more work to do to 'get the budget in better nick'Treasurer Jim Chalmers is doing the media rounds this morning ahead of the Reserve Bank's decision, starting with Channel Seven.Chalmers says he accepts there is more work to do to "get the budget in better nick" and make more savings in the federal budget.He blamed stubborn inflation, which the Reserve Bank has said is keeping the cash rate higher, on war in the Middle East."I think people understand that there are inflationary challenges in our economy," Chalmers says."But when you see what's happening with global oil prices, when you see what's happening with the escalation of the war in the Middle East, obviously factually, that is one of the big drivers of that inflation that people are having to deal with right now."Tue 29 Sep 2026 at 7:14amTue 29 Sep 2026 at 7:14amWilson says rising unemployment not the 'sole solution' to curbing inflationShadow Treasurer Tim Wilson says he doesn't think unemployment rising above 5 per cent is the "sole solution" to fixing inflation.The Reserve Bank of Australia is expected to increase interest rates today, which could bring it to the highest cash rate in 15 years.Wilson has accused state and federal governments of forcing the Reserve Bank's hand with inflationary spending.The shadow treasurer has told ABC News Breakfast if he were in government he would pare back "honeypots" such as the NDIS, home aged care packages and child care."We need to focus on value for taxpayers' money. It's not that honest taxpayers' money is going to dishonest means, it's also stoking inflation," Wilson says."This government has continually engaged in denial about the problems of their spending and how it is putting upward pressure on interest rates. The Reserve Bank has consistently said that this is a problem. Now, we need action from the government."Tue 29 Sep 2026 at 7:06amTue 29 Sep 2026 at 7:06amCanavan blames government spending ahead of expected rate hikeNationals leader Matt Canavan says today's expected interest hike could be the "straw that breaks the camel's back" for many families.The Reserve Bank of Australia will hand down its interest rate decision today, and it's widely tipped to hike the cash rate.Speaking to News24, Canavan has blamed government spending for fueling inflation, which is one of the reasons keeping interest rates high."The problem we have as Australians right now is we have a government that cannot admit its problems. If you can't admit there is a problem, how can you fix it?" Canavan says.Tue 29 Sep 2026 at 7:04amTue 29 Sep 2026 at 7:04amGood morning 👋Hello and welcome to our federal politics live blog. It's great to have you join us early on a Tuesday morning.I'm Josh Boscaini live from Parliament House in Canberra, here and ready to bring you all of today's federal politics news.The Reserve Bank will hand down its interest rate decision today, and it's widely expected they will hike rates.If the central bank decides to increase rates by 25 basis points, it will bring the cash rate to the highest in about 15 years.In other news, Greens leader Larissa Waters has announced she'll be stepping down from the party's leadership due to a kidney condition.Time to get this blog on the road.