Anthony Albanese on Caribbean quest leaving Treasurer Jim Chalmers and ALP mates to wear brunt of economy woes

Senior Labor figures are bracing for a torrid week ahead with another expected interest rate rise on Tuesday while the Prime Minister is in the Caribbean lobbying fellow world leaders for an Australian seat on the UN Security Council.

On Monday Australia’s largest bank slashed its outlook for the economy, warning that the slowdown will be deeper and last longer than first thought, and that there may be another lift in the official cash rate beyond a widely expected Melbourne Cup Day hike.

Adding to the Government’s political woes this week is the latest Newspoll showing its primary vote falling to 27 per cent, equalling the lowest level since Anthony Albanese won office in 2022 and just one point above Labor’s worst ever result in the survey.

Pauline Hanson’s One Nation party was recorded a point ahead of Labor on 28 per cent, while the Coalition lifted to 21 per cent, the Greens fell to 13 per cent and support for minor parties and independents rose to 11 per cent.

The results will intensify pressure on the government’s economic record, with Treasurer Jim Chalmers also recording a net approval rating of minus 16 and ranking as the worst-performing senior minister tested.

Facing questions about another likely lift in the official cash rate, Minster for Regional Development Kristy McBain echoed weekend comments from the PM who declared rate hikes are a “blunt instrument” hurting people with mortgages.

“Any decision by the independent Reserve Bank of Australia is in their domain, but Australians are under pressure and they’re already doing it really tough, which is why we’re focused on those cost-of-living measures,” Ms McBain said.

“But the Reserve Bank only have one tool and it’s obviously a very blunt instrument. So, I think Australians will all be wary about what’s going to happen tomorrow,” the Minister told the ABC.

In a further blow to government on Monday, the CBA slashed its outlook for the Australian economy, warning growth to slow to just 1.0 per cent a year by mid-2027, down from an earlier forecast of 1.8 per cent.

“The RBA will be on edge, and the risk remains the need for further tightening of monetary policy in 2027,” the CBA’s head of Australian economics Belinda Allen said.

“The economy is coming under increasing pressure on several fronts,” Ms Allen says, citing high inflation, rising rates, costlier energy and weak productivity.”

When the RBA reveals its next decision on monetary policy on Tuesday, the Prime Minister will be in the Caribbean meeting fellow Commonwealth leaders as he pushes Australia’s case for a seat on the United Nations Security Council.

“[CHOGM] provides Australia an opportunity to work with some of our closest partners on shared challenges, including climate change, the preservation of our oceans, trade and investment, and the rise of AI,” Mr Albanese said.

“It’s also an important opportunity for Australia to advance our campaign for a seat on the United Nations Security Council in 2029-30.”

Shadow Treasurer Tim Wilson on Monday leapt on the government’s economic woes saying a rate rise this week would take 52 per cent of the average Australian’s wage and hit harder than the 17 per cent rates in the 1990s.

Mr Wilson also accused Treasurer Jim Chalmers of holding an “active inflation agenda” which was “daring the Reserve Bank to increase interest rates further”.

“In the 1990s Australians were crunched by 17 per cent interest rates, but on current debt levels we are paying more today under Anthony Albanese and Jim Chalmers than Paul Keating”, Mr Wilson said.

“Because Jim Chalmers refuses to kick his spending addiction, more than half of an average wage is now being consumed just so families don’t lose their home, and with current debt levels it’s crunching Australians more than 17 per cent interest rates in the 1990s”.

Labor frontbencher Tanya Plibersek on Monday hit back at the criticism of Dr Chalmers, saying the Treasurer was “at the forefront” of driving savings to government spending.

“There’s been no reforming Treasurer in Australian history that hasn’t copped it when they’ve made big changes. We all support Jim. We all make decisions together. They are tough decisions,” the Social Services Minster told Channel Seven’s Sunrise program.

Asked about the government’s poor polling results, Liberal frontbencher Andrew Bragg said he wasn’t surprised at the latest Newspoll results, telling Radio 2GB: I’d say we’re a great country, but we’ve been poorly run”.

“We’ve got a long way to go here, but the most important thing, as you say, is we focus on the economy, because that’s where we can make real gains at the next election, because the Government have done such a bad job”.