Prime Minister Anthony Albanese has defended his trip to the Caribbean for a Commonwealth leaders summit as ‘worthwhile’, after dining with royals and visiting a vessel owned by mining billionaire Andrew ‘Twiggy’ Forrest while Australians faced another interest rate hike.
Albanese has landed back in Australia after a visit to Antigua and Barbuda for the Commonwealth Heads of Government Meeting (CHOGM) this week.
At the official dinner, he dined on a carefully curated Caribbean menu alongside King Charles III and Queen Camilla.
He also attended the launch of the Commonwealth Nature Initiative aboard Mr Forrest’s Green Pioneer with Antigua and Barbuda Prime Minister Gaston Browne and Guyanese President Irfaan Ali.
Back in Australia, the Reserve Bank’s fifth interest rate rise of the year left homeowners facing hundreds of dollars in additional mortgage repayments, according to industry modelling.
The Prime Minister had been asked about the increase while abroad, saying his government remained focused on strengthening the economy.
After his return on Saturday, Albanese insisted the visit had been ‘worthwhile’ and said the cash rate, which has reached an 18-year high, would not influence the Mid-Year Economic and Fiscal Outlook (MYEFO).
‘We’ll be consistent. We’ve looked for savings in each and every economic statement, and we’ll do so again in MYEFO,’ he said, according to ABC News.
Anthony Albanese said the advantage of attending the Commonwealth leaders’ meeting was the opportunity for discussions with UK Prime Minister Andy Burnham and Canadian Prime Minister Mark Carney
While Albanese was overseas, on Tuesday, Australians were hit with another mortgage blow after the Reserve Bank lifted interest rates by a quarter of a percentage point. Pictured, RBA Governor Michele Bullock
Anthony Albanese (left) met King Charles III (right) and Andrew ‘Twiggy’ Forrest (centre) during a visit to Antigua and Barbuda for the Commonwealth Heads of Government Meeting
He said the Labor government had a ‘savings package’ planned for the update, although little detail has been provided and it may not result in net savings.
‘We’re working on all of this,’ Albanese said while gesturing to documents in his hand.
Asked by The Australian why Australia’s inflation remains higher than that of comparable countries, Albanese said: ‘It’s rising around the world. It was higher [under the former government]. It had a six in front of it when we came to office.’
In defence of the trip, Albanese said the event provided an opportunity to discuss significant issues with Commonwealth leaders without the presence of the US or China.
‘I see the relationship between Mark Carney, Andy Burnham and myself as being very important,’ he said.
‘If there wasn’t a forum that didn’t feature the strategic competition between [the] US and China, and didn’t have authoritarian regimes like Russia involved, you might have to make it up. But there is, it’s called the Commonwealth.’
No major policy announcements emerged from the gathering of Commonwealth leaders.
Albanese also held talks with Burnham at the meeting regarding regional work arrangements for British backpackers, which he described as ‘constructive’, although no further detail was provided.
Albanese is pictured at the official dinner for the meeting alongside Queen Camilla
Opposition Leader Angus Taylor accused Albanese and Treasurer Jim Chalmers of being ‘in denial’ about the Australian economy.
‘We do need to lower government spending,’ he said.
‘This [inflation challenge] is homegrown. This is specific to Australia because of this government’s failures.’
Albanese previously said it was in Australia’s interest to attend the summit, adding: ‘At the personal invitation of King Charles, His Majesty, I agreed to come to this meeting.’
Asked by ABC News Breakfast whether he would have accepted the invitation, Taylor said ‘it depends on the circumstances’.
‘Let me say in any normal circumstances, going to CHOGM would be the right thing for any Prime Minister to do. But these are not circumstances that are normal,’ he said.
Albanese is due to leave Australia again in just a few days for a series of overseas summits including COP31 in Türkiye, ASEAN in the Philippines and APEC in China.
Meanwhile, many Australian families are facing growing budget pressures ahead of Christmas amid high interest rates and cost-of-living challenges.
Opposition Leader Angus Taylor suggested the current economic climate in Australia meant he might not accept an invitation to the summit
On Tuesday, Australian homeowners were hit with another mortgage blow after the Reserve Bank lifted interest rates by a quarter of a percentage point, pushing borrowing costs to a fresh high as it battles stubborn inflation.
A 0.25 percentage-point increase takes the cash rate from 4.60 per cent to 4.85 per cent, its highest level since the global financial crisis in 2008.
Canstar modelling shows a borrower who took out a $600,000, 30-year mortgage when Labor came to power in May 2022 would initially have paid $2,399 a month.
Once the latest hike takes effect, that repayment will reach $4,056, an extra $1,657 every month, or $19,884 a year.
On a $600,000 mortgage, a rate increase from 2.5 per cent to 6.74 per cent adds $2,120 a month, or $25,440 a year, in interest alone. That comparison holds the balance steady and excludes principal repayments.
Reserve Bank Governor Michele Bullock declined to say how high rates could climb and said the RBA would continue tightening monetary policy for as long as necessary.
The bank acknowledged the economy is slowing but argued persistent inflation and mounting global risks, including the war in the Middle East and rising oil prices, warranted another increase.
Chalmers said earlier this week that Labor is taking responsibility for its part in tackling inflation and the Middle East conflict has been the primary driver of the recent increase.
Finance Minister Katy Gallagher also said the government deserved an ‘acknowledgement of the hard work we have done over the last four years’ to keep spending down.
