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Dissent inside the RBA board about rate rise · The Front

• 0:01
  Speaker 1: Today's biggest news from The Australian. I'm Claire Harvey with
• 0:04
  Speaker 1: the front's afternoon headlines. Point of Law won the Melbourne
• 0:09
  Speaker 1: Cup by a country mile and rates went up just
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  Speaker 1: as everyone expected them to. In fact, the only surprise
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  Speaker 1: this afternoon is that three members of the Reserve Bank
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  Speaker 1: Board voted against putting the cash rate target up to 4.85%,
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  Speaker 1: revealing some controversy inside the board about whether they can
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  Speaker 1: slow inflation without wrecking the economy. First, the Melbourne Cup.
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  Speaker 1: Point of Law, a three-year-old stallion, belonged to King Charles
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  Speaker 1: III until August this year, when he sold it to
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  Speaker 1: a syndicate of owners whose judgment has just been vindicated.
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  Speaker 1: Trained by Kieran Marr and ridden by Ethan Brown, Point
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  Speaker 1: of Law was sold for something north of $ 3 million,
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  Speaker 1: and the new buyers offered the King the chance to
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  Speaker 1: keep a stake, but he declined.
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  Speaker 2: Now to the cash rate, which is at an 18-year
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  Speaker 2: high of 4.85%. After Reserve Bank Governor Michelle Bullock said
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  Speaker 2: she and the majority of the board believe they had
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  Speaker 2: to address domestic pressures urgently.
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  Speaker 1: Bullock said demand was still too high, pushing prices up,
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  Speaker 1: and the problem was evident even before the rise in
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  Speaker 1: oil prices, which have sent fuel, diesel and everything else
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  Speaker 1: through the roof. Treasury Jim Chalmers says the government's not
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  Speaker 1: to blame, even though economists widely believe government spending is
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  Speaker 1: too high.
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  Speaker 3: We take responsibility for our part of the fight against inflation.
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  Speaker 3: We're helping with the cost of living in a really
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  Speaker 3: responsible way, at the same time as we manage the
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  Speaker 3: budget responsibly and we try and address Australia's long-standing productivity challenge.
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  Speaker 3: The cost of living relief is coming via the wages system,
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  Speaker 3: the tax system, the health system and in other ways
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  Speaker 3: because we know that people are under pressure.
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  Speaker 1: Here's RBA Governor Michelle Bullock.
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  Speaker 4: Again, I know this interest rate rise is tough news
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  Speaker 4: for many households but this is the right thing for
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  Speaker 4: the Australian economy. Raising interest rates today is necessary to
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  Speaker 4: slow the economy and return inflation to target. It is
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  Speaker 4: critical that we stop expectations for high inflation from becoming
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  Speaker 4: embedded in price setting decisions across the economy or the
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  Speaker 4: problem will only get worse. If we just let high
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  Speaker 4: inflation run, it will lead to even worse outcomes. Much
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  Speaker 4: higher prices, higher unemployment and lower growth. We are using
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  Speaker 4: the cash rate to stop that from happening. Some pain
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  Speaker 4: now will prevent even worse pain down the track. Returning
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  Speaker 4: inflation to target is our priority and we will do
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  Speaker 4: what is necessary to achieve that.
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  Speaker 1: Bullock said government spending wasn't her department.
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  Speaker 4: And as I've also said before, governments have lots of
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  Speaker 4: goods and services that they need to provide and infrastructure,
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  Speaker 4: not just federal, all of the state governments as well.
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  Speaker 4: So there's a whole issue here about what governments need
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  Speaker 4: to provide for the people and how much spending therefore
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  Speaker 4: that entails. But that is for governments to decide. Independence
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  Speaker 4: is a two-way street. I don't tell them what to
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  Speaker 4: do with fiscal policy if they don't tell me what
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  Speaker 4: to do with interest rates.
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  Speaker 1: Check out those stories live right now at theaustralian.com.au. And
• 3:36
  Speaker 1: come back to the front first thing in the morning
• 3:38
  Speaker 1: for the stunning crash of a private jet in the
• 3:40
  Speaker 1: United States. Exactly how a plane with nine people on
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  Speaker 1: board could rocket into the ground at a terrifying rate
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  Speaker 1: of descent, what went wrong, and what it means for
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  Speaker 1: how safe we all are in the skies. That's right
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  Speaker 1: here Wednesday morning.