Australia live news updates: Albanese praises ‘sophisticated relationship’ with Indonesia; interest rate decision due

RBA raises official interest rate

Peter Hannam

The Reserve Bank has raised its official interest rate by the most in 22 years as the country’s central bank tries to quash inflation before it gets out of control.

The RBA board at its regular monthly meeting has just announced it has lifted its cash rate target 50 basis points to 0.85%. Economists were mostly split between predicting a 25bp or 40bp increase, according to Bloomberg.

More to follow.

Updated at 00.35 EDT

The treasurer, Jim Chalmers, responds to the rate rise new – the first rate rise under the new Labor government.

Updated at 00.37 EDT

Reserve Bank governor Philip Lowe said re the decision to raise rates:

Inflation in Australia has increased significantly. While inflation is lower than in most other advanced economies, it is higher than earlier expected.

Inflation is expected to increase further, but then decline back towards the 2–3% range next year. Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago.

RBA raises official interest rate

Peter Hannam

The Reserve Bank has raised its official interest rate by the most in 22 years as the country’s central bank tries to quash inflation before it gets out of control.

The RBA board at its regular monthly meeting has just announced it has lifted its cash rate target 50 basis points to 0.85%. Economists were mostly split between predicting a 25bp or 40bp increase, according to Bloomberg.

More to follow.

Updated at 00.35 EDT

Jacinda Ardern to visit Sydney this week

Josh Butler

New Zealand’s leader, Jacinda Ardern, will visit Sydney this week for meetings with Australian prime minister Anthony Albanese – his first foreign visitor since winning the election last month.

NZ media reported that Ardern would travel to Sydney on Thursday, along with her finance minister, to meet Albanese and the treasurer, Jim Chalmers. Albanese’s office confirmed the visit to Guardian Australia and said a statement would be issued shortly, with the Australian PM currently visiting Indonesia.

“We are fortunate to be close neighbours who share common values, history, personal connections, and business relationships,” Ardern said, according to NewsHub.

“This meeting also comes at an important moment in our reconnecting programme, as for New Zealanders and New Zealand businesses alike, Australia is a source of prosperity, labour, tourism, innovation, science and knowledge.”

Ardern’s statement said the trans-Tasman countries would “continue to cooperate closely in a world of increasing challenges”. NewsHub said the NZ PM expected to discuss “developments in our region” with Albanese, including climate change, the US’ Indo-Pacific Economic Framework, Aukus, and the upcoming Pacific Islands Forum.

Updated at 00.27 EDT

Albanese speaks on renewable energy opportunities with Indonesia

Albanese then speaks about the government’s plan to rewire the energy grid. He says it will ensure that renewables account for 82% of the national energy market by 2030.

He says he wants to see clean energy available and affordable across the region “as we move forward to a net zero world together”

That is why my government will expand our cooperation with Indonesia on climate change, including through our commitment to establish a new climate and infrastructure partnership. We [will] work with Jakarta to build a resilient clean energy sector and unlock green trade and investment opportunities.

Because both of our countries recognise climate change is not only a problem to be solved, but presents opportunities to us, to embrace opportunities, particularly to benefit the younger generations who I see at this university today.

Anthony Albanese delivers a speech at Hasanuddin University in Makassar, Indonesia. Photograph: Lukas Coch/AAP

Updated at 00.31 EDT

Albanese press conference in Indonesia

The prime minister, Anthony Albanese, is speaking in Makassar, Indonesia.

He gets cheers after saying it is his eighth visit to Indonesia.

He speaks about how much the bike ride and meeting with president Joko Widodo meant yesterday:

I have been out cycling with your president, you might have seen. I was both honoured and touched that the president suggested a bike ride through the palace gardens. It was such an enjoyable way to see the magnificent grounds there、 but it was also a great pleasure to engage with the president in such a personal one-on-one way yesterday. And it will be a memory that I cherish for the rest of my life.

He is now speaking about the close ties between Australia and Indonesia, and the long relationship between the Makassan seafarers and First Nations people of Australia, built around trade.

He mentions he is proud his ministry has for the first time, two Muslim Australians, Ed Husic and Ann Aly.

Both of them held the Koran as they were sworn in as ministers last week, both elected to parliament from diverse communities, one in Sydney in Ed’s case and in and Ann’s case, Perth.

An important point to make here about the nature of Australian society is that for both of them, the Muslim population in their electorate is a very small majority … I take this as really heartening confirmation that we are mature … as a nation.

This is the enduring value of Australian multiculturalism and the great spectrum of Australia’s religious and cultural diversity.

Updated at 00.17 EDT

And with that I will leave the blog in the steady hands of Josh Taylor for the rest of the day. Thanks for reading.

While coverage of the PM’s trip to Indonesia has been extensive, I can guarantee that you have not yet seen the best of it yet.

That would come in the form of an edited video posted to Indonesian president Joko Widodo’s Twitter, where Albanese’s visit is cut together like an action film. Worth a watch:

Labor’s Andrew Leigh declares war on charities ‘ended on 21 May’

Labor’s charities minister, Andrew Leigh, has addressed an Australian Progress conference, and declared the “nine-year war on charities” over.

Leigh said the Labor government will work towards “doubling philanthropy” and reforming “outdated” laws:

Charities will no longer suffer attacks on their ability to advocate for the most vulnerable people in our community.

Australia faces a social capital crisis. Rates of joining, volunteering and participating have declined.

To create a reconnected Australia, we need to work with charities. Our goal is to strengthen the social fabric and build resilient communities.

We have set an ambitious goal to double philanthropy by 2030, to reform outdated fundraising laws, and to build the sector.

Updated at 23.37 EDT

Albanese says Australia has ‘sophisticated relationship’ with Indonesia

As Albanese touched down, he had time for one question, and said his main message for his trip was a recognition of Indonesia’s vast diversity and “opportunity.”

It’s a sophisticated relationship. We had a very successful visit in Jakarta and a wonderful warm welcome from president Widodo. And the Indonesian government were very pleased when I made a request to visit Makassar.

I wanted to make sure that we send a message as well that we understand that this vast country is one that’s diverse, one that is a land of opportunity. It will grow into the future.

Makassar has a great future as part of Indonesia’s growth, which will see it grow to one of the top five economies in the world in coming years. Thank you very much.

Updated at 23.22 EDT

Albanese touches down in Makassar

Dressed in traditional garb, prime minister Anthony Albanese has touched down in Makassar, giving a quick presser and emphasising that Indonesia is more than its major cities.

This is the first visit from any Australian prime minister to Makassar. Makassar is an important financial centre.

The largest city in [eastern Indonesia] and the visit here is to signify as well that the Australian government understands that Indonesia is such a vast country and that we need to reach out.

There are opportunities for Australian business and investment here in Indonesia.

Albanese will be visiting the second largest flour mill in the country, as well as local businesses and a university.

Updated at 23.16 EDT

Sally McManus speaks on Fair Work Commission’s upcoming minimum wage decision

The Australian Council of Trade Unions secretary, Sally McManus, has addressed the media in Canberra about the Fair Work Commission’s minimum wage decision, expected in the next week.

McManus said there was “no doubt” that inflation will be headed higher than 5.1%, and given productivity is already greater than 1%, the unions’ claim for a 5.5% minimum wage rise will not be inflationary.

The ACTU secretary said calls for the pay rise to be delayed by three to six months in some industries were “disturbing” and questioned the morality of some employers groups advocating for that action, arguing this had been done as an emergency measure during the pandemic and lockdowns, but should not occur this year.

McManus welcomed the Labor government’s submission that low-paid workers should get pay rises that keep pace with inflation, but argued all one-in-four workers who rely on the FWC decision for a pay rise are low-paid, even though only 2% are on the national minimum of $20.33 per hour. McManus said many of the rest are in sectors like hospitality, retail or aged care where the minimum is little better at about $22 per hour.

She also said unions are happy to work with the new government and employers to address low wage growth at the employment summit, but suggested some “urgent legislation” could be passed before then – such as inclusion of family and domestic violence leave in the national employment standards.

McManus also called on Labor to do something about the “shockingly stacked” Fair Work Commission, “including the minimum wage panel”.

The comments follow the ACTU’s call to discipline one of the expert members of the panel for comments criticising Labor’s wages policy.

Updated at 23.11 EDT

Western Sydney University staff are on strike today

Staff at Western Sydney University are striking today, demanding a fair pay rise and better job security.

The National Tertiary Education Union (NTEU) had previously described a 2% pa increase currently offered by the university as “pitiful”, especially as cost of living continues to rise.

NTEU NSW secretary Dr Damien Cahill told the ABC the union would also push management to covert casual staff into secure contracts.

We were on the cusp of an agreement that would deliver mass conversion of casual work into secure jobs, with good conditions.

But management now says if we want this, staff need to accept a pay rise well below inflation.

Updated at 22.57 EDT

Good afternoon, and a quick thanks to Caitlin Cassidy for her stellar work this morning. Mostafa Rachwani with you for a bit this afternoon, on standby for that RBA announcement.

With that, I will pass you on to the excellent Mostafa Rachwani who will keep you covered for the rest of the day, including the RBA interest rates decision, due to land at 2.30pm, and all the latest updates from Indonesia.

SA records five deaths, 2,715 new Covid cases

The South Australian government has also released its daily Covid update.

There have been 2,715 new Covid cases detected and five deaths.

There are 234 people in hospital with the virus, including seven people in ICU.

Updated at 22.38 EDT

WA records two deaths, 5,787 new Covid cases

Western Australia’s premier Mark McGowan has released the state’s daily Covid update.

There have been 5,787 new cases reported and two further deaths, reported to WA Health yesterday but dating back to previous days.

There are 290 people being treated in hospital with the virus including 15 people in ICU.