Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. What does the independent Reserve Bank's decision on interest rates mean for the economy?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thank you to the wonderful member for Chisholm for her question. The independent Reserve Bank have kept rates on hold at 4.35 per cent, and they've pointed to the fact that inflation is moderating in line with their forecast. Interest rates have now been on hold for more than four months. By the time that the Reserve Bank board next meets, it will have been six months without an interest rate hike—

Milton Dick (Speaker) Share this | Link to this | Hansard source

The member for Casey will cease interjecting.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

This gives homeowners and small businesses some of the certainty that they need and deserve in difficult times. It's a reflection of—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer will pause. The member for Fisher has interjected around 18 times between yesterday and today. He is warned, and he won't interject. I know he's packing up, but he can be a lesson, a beacon of hope to everyone, by not interjecting for the remainder of this question and every other question. The Treasurer has the call.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

This decision is a reflection of the good progress that we are making as a country in the fight against inflation. It gives us confidence that inflation is moderating in welcome and encouraging ways. Inflation has come off very substantially since its peak in 2022. And as I said a moment ago, in quarterly terms, inflation is now around a third of what we inherited from those opposite, and we know from the Australian Bureau of Statistics that our policies are contributing to the moderation and inflation. The budget restraint has given us the first surplus in 15 years, but we also know that the combination of our policies on electricity bill relief, early childhood education and rent assistance—

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The member for Casey is warned.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

have also taken about half a percentage point off the CPI.

We also know that it's not anything like 'mission accomplished', because people are still under considerable cost-of-living pressure. This is why our cost-of-living relief—including our tax cuts—is so important and it's why it has been designed to take the pressure off inflation rather than add to these inflationary pressures. It's also why we've ensured that we can fund tens of billions of dollars in cost-of-living help at the same time as we clean up the mess that those opposite left behind in the budget. People are under pressure—we acknowledge that—but because of our efforts people are earning more and they are keeping more of what they earn, inflation is moderating, the budget is in better nick, and the default market offer, as the energy minister said a moment ago, shows price reductions in the electricity market.

The Reserve Bank governor has said before that our efforts in the budget have been very positive and very helpful in this fight against inflation. The governor will have an opportunity to expand on and explain the decision that they have taken today at the press conferences that the Governor Bullock has undertaken to do after each decision. I think this is a really good change; it has been well supported and it has been well received. It's one of a number of really important initiatives that came out of the Reserve Bank review undertaken by this government, and I encourage the parliament to support the other review recommendations as well.