RBA defends rate hikes | ABC News Top Stories

From ABC News Top Stories by ABC Australia

May 5, 2026 · 2 min

About this episode

Reserve Bank Governor Michele Bullock defends interest rate hikes amid rising inflation and discusses the impact of antisemitism in Australia.

Reserve Bank Governor Michele Bullock has defended the central bank's decision to raise interest rates for the third time this year. The official cash rate has risen by a quarter of a percentage point to four-point-three-five per cent, effectively unwinding last year's cuts. Ms Bullock says conflict in the Middle East has forced up fuel prices and, in turn, businesses are raising the cost of their goods, driving up inflation. A tax cut of up to 300 dollars this financial year for Australian workers has not been ruled out by Labor ahead of the federal budget. Prime Minister Anthony Albanese has acknowledged the speculation and says voters can make up their own minds about any tax changes unveiled next week. The Coalition has raised concerns about the inflationary impact of a potential cut but is awaiting details before announcing a position on Labor's changes. An Israeli immigrant has told the Royal Commission on antisemitism and social cohesion Australia doesn't feel like a safe place and she is preparing to leave the country with her family. The inquiry has heard evidence from Dr Tali Pinsky, who migrated to Australia with her husband and four children early last year to take up…

People in this episode

Guest: Dr Tali Pinsky

Topics covered

interest rates
inflation
tax cuts
antisemitism
social cohesion
Middle East conflict

Keywords

interest rates
inflation
tax cuts
antisemitism
Middle East
Australia
Reserve Bank

Mentioned in this episode

Organizations: Reserve Bank, Labor, Coalition

Places: Australia, Israel