Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

I know. Imagine—an issue like that in this place! The independent Reserve Bank met yesterday, as Senator Sheldon said, and kept rates on hold at 4.35 per cent.

I can't hear you, Senator McKim, other than a loud kind of rabble in the corner. Interest rates have been on hold now for four months, which is welcome news, particularly for mortgagees who have been feeling the brunt of those interest rate increases over the last 18 months or so—which, of course, started under the former government when inflation, in a quarterly sense, was at its highest.

The board's statement was clear: that inflation continues to moderate in line with their forecasts but returning inflation to the target band is and remains the priority. Managing the inflation challenge in the economy remains a key priority for the Albanese government as well. What the decision yesterday shows is that good progress is being made in the fight against inflation. It has come off significantly since its peak in 2022, and I think demonstrates that the work we're doing on the fiscal side in supporting the work that the bank has been doing in trying to better balance demand and supply across the economy.

When you look at what we've been able to do across the budget—the first surplus in 15 years, which is very important in terms of managing inflation. We've turned a $78 billion deficit into a $22 billion surplus, and at the same time we've been able to do that we've been able to make important investments to alleviate and reduce some of the pressure people have been feeling on their household budgets, whether it be energy bill relief— (Time expired)