Election 2022 LIVE updates: Scott Morrison issues national integrity commission warning; RBA flags more interest rate rises after 0.25 percentage point jump

Election 2022 LIVE updates: Scott Morrison issues national integrity commission warning; RBA flags more interest rate rises after 0.25 percentage point jump

May 3, 2022

Key posts

  • Home buyers face mortgage hike with interest rates set to climb further
  • This morning’s headlines at a glance
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Home buyers face mortgage hike with interest rates set to climb further

Home buyers will have to find almost $100 extra a month to pay their mortgages after the Reserve Bank delivered its first increase in official interest rates in 12 years, with warnings it will have to increase them even further to deal with spiralling inflation pressures.

In a dramatic intervention during the election campaign, the RBA – which has held the official cash rate at 0.1 per cent since late 2020 – lifted interest rates by a quarter of a percentage point yesterday.

RBA Governor Philip Lowe speaking in Sydney after yesterday’s rate rise announcement. Credit:Louie Douvis

Australia’s commercial banks have already started to lift their own interest rates in response. The move added more pressure to the Coalition and Labor to detail how they would handle rising cost-of-living pressures just weeks out from the May 21 election day, as experts predict more pain to come with a succession of rate rises expected over the rest of the year.

Prime Minister Scott Morrison said he had “sympathy” for mortgage holders, but he refused to follow John Howard’s 2007 example and apologise to voters for an election campaign rate rise.

Shadow treasurer Jim Chalmers said the RBA’s decision showed the government was losing control of the economy.

Read the full story here.

This morning’s headlines at a glance

Good morning and thanks for your company.

It’s Wednesday, May 4. I’m Broede Carmody and I’ll be anchoring our live coverage for the first half of the day.

Here’s what you need to know

  • Three of Australia’s major banks have raised their mortgage rates after yesterday’s interest rate rise. The Commonwealth Bank was the first to raise its mortgage rates by 0.25 percentage points yesterday, matching the Reserve Bank’s first interest rate hike in 11 years. ANZ and Westpac then followed suit. The hikes mean people will now face higher mortgage repayments. Interest rates are expected to climb further in the coming months, possibly reaching 2.5 per cent by next year. The official interest rate is currently at 0.35 per cent.
  • Treasurer Josh Frydenberg and his Labor counterpart Jim Chalmers are due to address the National Press Club later today. Labor has been arguing that the Morrison government has shirked its responsibilities when it comes to cost-of-living pressures. Meanwhile, Coalition MPs insist their party has demonstrated a strong economic record and now is not the time for Australia to change government.
  • And in other news, Prime Minister Scott Morrison has declared that Australia could become a “public autocracy” if politicians establish a national integrity commission with, in his view, too much power. The so-called teal independents threatening inner-city Liberal seats are campaigning for a national watchdog with “teeth”. Labor and the Greens also want to establish a federal Independent Commission Against Corruption.
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