RBA hinted at ‘super-large’ rate hike amid cost-of-living crisis

Homeowners prepare for a new cost of living hit amid expectations that the official cash rate will jump above 2 percent for the first time in six years.
the Vegetables they are calling for a pause in interest rate hikes as the cost-of-living crisis drives some families to charities in search of food and hits everyone at the supermarket checkout.

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

Tayla Parian thinks the cost of her regular store has nearly doubled. (9News)

“It cost me about $120 this time.”

The Reverend Bill Crews Foundation in NSW is providing more than 10,000 meals a week, along with hundreds of food parcels, as some are pushed into poverty.

“I would like to see the government making sure people don’t go hungry, which is true,” Crews told 9News.

The Reserve Bank raised the official cash rate from its record low of 0.1 percent in May, following suit in June, July and August.

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

The rate is now 1.85 percent and is expected to exceed 2 percent when the board meets on Tuesday, but the Greens don’t want it to go any higher for now.

“The RBA should pause interest rates at least until the October budget and push the government to provide significant and genuine immediate cost-of-living relief,” argued Senator Nick McKim.

Greens Senator Nick McKim wants a pause on cash rate increases. (9News)

Regardless, economist Chris Richardson predicted an “oversized” cash rate hike of up to half a percentage point, saying it was the organization’s only weapon to combat inflation.

“The Reserve Bank will only stop when it hurts,” he told 9News. “It hurts a lot that we spend less than we spend right now and allow inflation to come down from where it is.”

Economist Chris Richardson expects a big boost in the cash rate when the Reserve Bank of Australia meets on Tuesday. (9News)

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

As global oil prices soared due to Russia’s unprovoked invasion of Ukraine, the Morrison government halved the tax on fuel in May, slashing 22 cents from the cost of a liter of gasoline.

Unless extended by the Albanian government, that tax break ends on September 28, causing a 25ยข increase once GST is included.

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

Parliament returns this week and the opposition will attack cost of living pressures and Labor’s adoption of allowing unions to strike multi-employer wage deals.

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

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But Skills and Training Minister Brendan O’Connor argued for greater wage bargaining power, saying real wages had fallen 3.5 percent as a result of inflation.

“The breathless hysteria about the massive dispute happening because we used a new vehicle to negotiate is not based on facts,” he told ABC Insiders today.

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