The treasurer, Jim Chalmers, has described the Reserve Bank’s decision to hike the cash rate by 50 basis points as “difficult” news for homeowners, while warning that inflation will get worse before it gets better.
The prime minister, Anthony Albanese, who is in Indonesia, left the government’s response to the RBA’s higher-than-expected increase on Tuesday to his treasurer as he sought to revive a Keating-era tradition of not commenting on domestic issues while travelling overseas.
