Interest rates

RBA expects ‘oversized’ rate hike amid cost of living crisis

The owners are preparing for a new Cost of life hit amid expectations, the official exchange rate will rise above 2% for the first time in six years.
The Green vegetables are calling for a pause in rising interest rates as the cost of living crisis pushes some families to turn to charities in search of food and hits everyone at the supermarket checkout.

“Usually it would cost me what I just got, two bags, maybe around $60,” Sydney customer Tayla Parian told 9News today.

Tayla Parian thinks the cost of her usual store has almost doubled. (9News)

“It cost me almost $120 this time.”

The Reverend Bill Crews Foundation in New South Wales provides more than 10,000 meals a week, along with hundreds of food parcels as some fall into poverty.

“I would like the government to make sure that people don’t go hungry, which they are,” Crews told 9News.

The Reserve Bank raised the official exchange rate from its all-time low of 0.1% in May, following suit in June, July and August.

The cash rate has risen steadily since May. (9News)

The rate now stands at 1.85% and is expected to top 2% when the board meets on Tuesday, but the Greens do not want it to go higher just yet.

“The RBA should take a break on interest rates at least until the October budget and press the government to provide immediate and meaningful cost-of-living relief,” Senator Nick said. McKim.

Greens Senator Nick McKim wants a break from cash rate increases. (9News)

Either way, economist Chris Richardson predicted an “oversized” rise in cash rates of up to half a percentage point, saying it was the organization’s only weapon to fight inflation. .

“The Reserve Bank will only shut down if it hurts,” he told 9News. “It hurts enough that we’re spending less than we’re spending right now and allowing inflation to come back down to where it is.”

Economist Chris Richardson expects the exchange rate to rise sharply at the Reserve Bank of Australia’s meeting on Tuesday. (9News)

Drivers brace for the pain at the supermarket checkout that will soon be reflected at gas stations.

As global oil prices soared following Russia’s unprovoked invasion of Ukraine, the Morrison government halved the fuel tax in May, cutting the cost of fuel by 22¢. a liter of gasoline.

Unless the Albanian government extends it, this tax holiday ends on September 28, causing a 25¢ jump once GST is included.

“I also have a child to feed,” driver Dion Karafyllas told 9News.

Parliament returns this week and the Opposition will tackle cost of living pressures and Labor’s acceptance of unions being allowed to strike pay deals with multiple employers.

“It will take this country back to the dark ages of the 70s and 80s,” said opposition spokeswoman Michaelia Cash.


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But Skills and Training Minister Brendan O’Connor defended the increase in wage bargaining power, saying real wages had fallen by 3.5% due to inflation.

“The breathless hysteria about massive arguments that are happening because we’re using a new vehicle to negotiate isn’t supported by the facts,” he told ABC’s Insiders today.