CANBERRA, ACT, Dec. 9 -- The Treasurer of Australia issued the following transcript:
Note
Subjects: interest rate decision, MYEFO, social media ban, gas strategy
Jim Chalmers:
Today, the independent Reserve Bank left interest rates on hold at 3.60percent. A lot of Australians would have wanted some more rate relief but wouldn't have expected it. This was the outcome widely anticipated by markets and economists, and it comes after there have already been 3 interest rate cuts this year. The 3 interest rate cuts that are already in the system this year are saving someone with a $700,000 mortgage about $4,000 a year. So, the 3 rate cuts which are already flowing, which the Reserve Bank has said today the benefits are not yet fully felt, that is providing welcome relief to Australians with a mortgage who are doing it tough, even after rates were left on hold today
So, this was the expected result. A lot of Australians would have wanted some more rate relief, but they wouldn't have expected. There was, in the estimations of the markets and the economists, no chance of a rate cut today and that's what we've seen in this decision taken independently by the Reserve Bank.
Now, a couple of points about the statement that the Reserve Bank released. First of all, they point out that the inflation number which came out recently- which is much lower than we inherited but much higher than we would like- is a mix of some temporary factors and potentially some ongoing factors. In the statement, they point to the fact that some of this inflation that we've been seeing in recent months comes from temporary factors. In the usual, cautious and considered way, they will monitor the developments in inflation, including seeing some of those temporary factors wash out.
The second emphasis in the Reserve Bank's statement today is really about the recovery in the private economy. The story of our economy in 2025 has been about the very welcome, very encouraging recovery in the private sector. From time to time you'll hear some absolute rubbish from our political opponents who say that the bank is focused on public spending. The Reserve Bank hasn't actually said that public spending has been a factor in their decisions throughout this whole year. No mention whatsoever of public spending in today's statement.
In fact, the opposite. They point to the fact that the heavy lifting in our economy is now being done by the private sector, that's a good thing. That's been the story of 2025. In fact, if you go through all of the statements that the Reserve Bank has released throughout the course of 2025, the common theme and the encouraging theme is the way that private demand and the private sector has overtaken public demand and the public sector as the primary driver of growth.
We saw in the most recent National Accounts that business investment is growing very strongly, housing investment recovering as well. We've had 4 consecutive quarters of productivity growth. All of those things are good developments. The Reserve Bank has not mentioned at all public spending or public demand in the statement that they released today and throughout the year, it has not been a factor, because it's been the private sector taking over, and that is a good thing.
We want to see this inflation moderate more, but it is only a bit over half what we inherited when we came to office. So, Australians have made a lot of progress together on inflation, on real wages, on this recovery in the private sector. We know there's more work to do and there are elements of the Reserve Bank's statement which make that clear as well. Happy to take a couple of questions.
Journalist:
Do you think with that recover in the private sector you spoke about, rising interest rates will be an inevitable consequence of that recovery?
Chalmers:
Not necessarily, but I don't make predictions or pre‑empt decisions taken independently by the Reserve Bank. There are good reasons why treasurers of both political persuasions don't do that. The bank has its job to do independently, and I'm focused on my job. My job is to work closely with Katy Gallagher, the PM and the Cabinet to deliver a very responsible mid‑year budget update next week, and that's my focus.
The defining feature of this Albanese Labor government has been responsible economic management. That will be the defining feature of the mid‑year budget update as well. And as the Reserve Bank Governor has said on other occasions, what sets us apart from other countries around the world is we've delivered 2 surplus Budgets, we've got the third year deficit down to a fraction of what we inherited. The Liberal debt is down a couple of hundred billion dollars because of our efforts. We've found $100billion in savings.
That's our job, to manage the budget and the economy in the most responsible way that we that we can. We're doing that, and we leave the independent Reserve Bank to focus on doing its job.
Journalist:
With MYEFO coming up, do you think the government will need to find spending cuts to ease pressure on inflation?
Chalmers:
There'll be more savings in the Mid‑Year Economic and Fiscal Outlook that we release next week. There have been savings in each of the Budgets and budget updates that we've released, and that's because we recognise that budget repair and responsible economic management is an ongoing task. The job is never finished when it comes to making sure the budget is as responsible as it can be.
And as I said, we've already found $100billion in savings. We've redirected that to more important areas, like strengthening Medicare, building urgent care clinics, cutting income taxes 3 times, making sure that Australians are getting the cost‑of‑living help that they need and deserve in a permanent and ongoing way.
People should expect to see in our mid‑year budget update next week some familiar elements. Savings, spending restraint, banking upward revisions to revenue, making sure that we get the budget in as good a nick as we can at the same time as we fund our priorities - including helping people with the cost of living in an ongoing way.
Journalist:
Australia's world leading social media laws come into effect tomorrow. How important a moment is this for us as a country?
Chalmers:
Well, this will be a game changer for Australian kids and for Australian parents. This is all about making sure that the young people of Australia are safe online, making sure that as technological change accelerates, that we can be beneficiaries of that change, not victims of that change.
You don't need to be a parent- but it helps- to understand that our kids are not as safe online as we need them to be, and that's what motivates these changes. And here I pay tribute to Minister Wells and the Prime Minister and my Cabinet colleagues for working through these issues in a considered and methodical way over a period of time.
We know that there will be bumps along the road. We know that people will find their ways around different elements of these new arrangements. But overwhelmingly, this will be a game changer for the kids of Australia, the parents of Australia, our country more broadly - and that's why the rest of the world is paying close attention.
Journalist:
We expect energy costs to be a big part of inflationary pressures. When are we going to hear about the government's gas strategy going forward?
Chalmers:
Well, we've been in discussions with the relevant ministers about the gas strategy. People would be aware that we're putting the finishing touches on that. I'll leave the timing of any announcements to Ministers King and Bowen and the Prime Minister to determine.
But it's all about making sure that as we transition to cleaner and cheaper energy, there will be an ongoing and important role for gas, and we need to make sure that there's enough supply at affordable prices. That's what motivates our work when it comes to the gas strategy.
And again, Minister King, Minister Bowen, the Cabinet, Minister Ayres have all been heavily engaged on this for some time. There has been a review done. There's been a lot of work done with the sector to make sure that we get this right and when we're ready to announce it, we'll announce it.
Journalist:
Just back to the social media laws. Is it frustrating for the government that this occasion has been somewhat overshadowed by Anika Wells' expenses?
Chalmers:
I think it's a really important change that comes into force tomorrow, and that's what we're focused on. Inevitably, the news cycle will be focused on all sorts of different things. But for us, the focus is on the mid‑year budget update, it's on landing these game‑changing world‑leading social media reforms and making sure that this continues to be a year of delivery.
2025 for this Albanese Labor government is a year of delivery. We have been working our way through the commitments we took to the people in May, when they placed their trust in us and we've been implementing the policies that we took to that election. Strengthening Medicare, strengthening protections for kids online, delivering responsible budgets, making medicines cheaper, cutting student debt. These are all of the things that we talk to the people in May, and we've spent 2025 delivering on those commitments.
Thanks very much.
Disclaimer: Curated by HT Syndication.
