Rate rise piles pressure on government as opposition under fire over

Interest rates have risen by 50 basis points as the Reserve Bank attempts to slow rising inflation, putting the government in a tight spot as it tries to provide reassurance for households.

Treasurer Jim Chalmers in House of Representatives Question Time at Parliament House in Canberra. Source: AAP / AAP

Key Points

• As anticipated, interest rates have risen by 50 basis points, taking the cash rate to 1.85 per cent.
• The government is working up towards the October budget, where its cost-of-living policies on childcare, energy investment, and training will all be included in the hopes of establishing longer-term support for households and businesses.
• The Opposition is calling for immediate action.

The Opposition is applying pressure for more measures to ease the immediate costs of living, as it formally announces it will vote against the government's climate bill.