Australia news LIVE: RBA lifts interest rates to 10-year high; Greens to back Yes vote in upcoming referendum

Thanks for joining us today. Here are some of our major headlines for the day:

• The Reserve Bank has lifted the official interest rate to 3.35 per cent as it continues to fight ongoing inflation pressures. The quarter percentage point lift is a record ninth consecutive increase to the official cash rate by the RBA board.

• ANZ Bank is the first major lender to announce interest rate rises after the Reserve Bank’s move today, saying it will lift variable rates on home loans by 0.25 percentage points to 4 per cent.

• Reserve Bank Governor Philip Lowe warned there will likely be further rate hikes in the months ahead as global inflation remains very high. “The board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary,” he said.

• Prime Minister Anthony Albanese has announced that the Australian government will send $10 million in humanitarian aid to earthquake victims in Turkey via agencies such as the Red Cross.

• Question time has kicked off in parliament with a warm welcome to New Zealand Prime Minister Chris Hipkins, who recently took over from Jacinda Ardern, and New Zealand High Commissioner Annette King, who are both sitting in the lower house. Prime Minister Anthony Albanese praised the economic relationship between the countries, as well as the arrangement to co-host the FIFA Women’s World Cup later this year.

Reserve Bank governor Philip Lowe describes it as a painful squeeze. But the decision to tighten official interest rates again, with more to come, is increasing the risk of squeezing the life out of the economy he is trying to save.

Read Shane Wright’s analysis of today’s interest rate here.

RBA chief Phil Lowe.Credit: Alex Ellinghausen

ANZ Bank is the first major lender to announce interest rate rises after the Reserve Bank’s move today, saying it will lift variable rates on home loans by 0.25 percentage points.

ANZ said variable mortgage rates would increase by 0.25 percentage points from the 17th of February, while it is also raising savings rates on its digital banking platform ANZ Plus by 0.25 percentage points, to 4 per cent.

ANZ retail group executive Maile Carnegie Credit: Louie Douvis

Group executive in charge of retail banking for Australia, Maile Carnegie, urged borrowers facing financial difficulties to talk to the bank about potential support options.

“At a time of increased cost of living and rate changes, some customers will be feeling greater financial pressure,” Carnegie said.

In state news, NSW Labor leader Chris Minns has reiterated his plan to conduct a trial into cashless poker machines if successful at the March election amid major criticism from the Liberal Party about the opposition’s current policy.

Announcing his plan to make all poker machines cashless in NSW by the end of 2028 on Monday, NSW Premier Dominic Perrottet said Labor’s response to the issue was “written on the back of a beer coaster” and lacked detail for voters.

NSW Opposition Leader Chris Minns Credit: James Alcock

Speaking on Tuesday, Minns refuted the notion Labor’s policy was too weak and said he was confident a trial was the right way forward.

He also added Labor’s plan for a cashless system would also include third-party exclusion options for problem gamers.

“I want to make sure that any reform that we pursue in fact works and doesn’t make what is undeniably a terrible situation worse,” he said.

“I don’t think an evidence-based approach on a tricky and difficult public policy issue is irresponsible. In fact, I think it’s the right thing to do.”

Minns labelled Labor’s reform as “very detailed” and said he was dedicated to ensuring cashless gaming would not negatively impact venues across the state.

“We’re being upfront and open about what our policy is. It’s not a single issue. It’s a comprehensive plan.”

Star Entertainment Group is preparing to fight a fourth securities class action in Victoria’s Supreme Court following a claim from Shine Lawyers.

The claim alleges The Star misled shareholders and did not disclose information about systems and processes for compliance with anti-money laundering and counter-terrorism financing obligations between March 29, 2016 and May 25, 2022. The claim also alleges the group failed to disclose its conduct with junkets as well as the group’s accounts with the Bank of China Macau and China Union pay transitions.

The Star said it intends to defend the proceedings in a statement to the ASX on Tuesday. The claim follows similar court proceedings filed by Slater & Gordon in March, Maurice Blackburn in November and Phi Finney McDonald on Monday. All claims will be heard by the Supreme Court of Victoria.

Two independent inquiries in Queensland and New South Wales recommended The Star be stripped of its casino licences, following a 2021 investigation by The Sydney Morning Herald, The Age and 60 Minutes. The investigation alleged the company enabled suspected money laundering, large-scale fraud and foreign interference in its Australian casinos, even though its board was warned its anti-money-laundering controls were failing.

The group’s share price fell by almost 23 per cent, 98 cents, in a single day of trading on October 11, 2021- one day after the investigation was published- and reportedly wiped nearly $1 billion off its market value.

Senator Lidia Thorpe said she wanted to meet King Charles and would be “on with the first plane” if she was invited to a meeting.

“I really want to meet with the King,” Thorpe told the ABC. “Why not? I am a senator. Surely, I can do that.”

Senator Lidia Thorpe made the comments in her first interview since quitting the Greens and becoming an independent.

Senator Lidia Thorpe.Credit: Getty

Senator Lidia Thorpe has asked her critics to stop “demonising” her for her decisions after quitting the Greens and becoming an independent.

Giving her first interview since quitting to the ABC Thorpe said: “As a black woman in the political arena, people need to check themselves. If you’re a true ally, and you believe in Aboriginal people having a say in this country, then stop demonising me for the decisions that I’m making based on a grassroots collective of sovereign back people.

Lidia Thorpe has joined the Senate crossbench.Credit: Alex Ellinghausen

“I would say, look at January 26, maybe rewind the news to January 26, it seems to be forgotten that tens of thousands of people came out for treaty before Voice but also sovereignty before Voice,” she said.

Thorpe says she will be announcing plans in coming weeks to “bring more people to the table and allow those sovereign people to have a say”.“But I also question the government and the prime minister as to why Peter Dutton was invited to meet with the working groups and not the grassroots black sovereign movement,” she said.

“I’ve never been invited. So, I will put that out there to the prime minister and the minister for Indigenous Australians that the black sovereignty grassroots movement want to meet with the two advisory groups that Labor set up and through a hand-picked process.

“Let’s bring the groups together. And it will be a conversation that we need to have. We don’t want to fight each other out in the public, we want to unite, but we have to ensure that we get some wins along the way.”

Workplace Relations Minister Tony Burke has attributed his recent industrial relations reforms to luring ANZ bank back to the bargaining table with its employees to hatch out a new enterprise agreement after seven years.

Burke said employers would revert to striking enterprise agreements with their workers to avoid multi-employer bargaining under the new laws.

“That’s exactly what happened,” he said, adding Coles had been drawn back to negotiations with its workers under the Secure Jobs, Better Pay legislation that passed in December.

Workplace Relations Minister Tony Burke.Credit: James Brickwood

“Similarly, ANZ, after seven years of not being at the bargaining table, are at the bargaining table again. I welcome the positive engagement from those businesses,” he said.

Finance Sector Union national secretary Julia Angrisano said the union had begun negotiations with both ANZ and Commonwealth Bank.

“The ANZ agreement expired seven years ago and is in urgent need6 of upgrading,” she said. “The fact that it has taken seven years for these corporations to engage with the FSU is shameful however we are committed to bargaining in good faith and winning leading wages and conditions for our members.”

The Australian sharemarket has given up gains from earlier in the day after the Reserve Bank flagged more interest rate rises to come, as it seeks to rein in inflation.

The ASX 200 index fell from 7548 points before 2.30pm to 7501 points, meaning shares were down 0.5 per cent.Credit: Oscar Colman

The ASX 200 index, which had been slightly higher morning trade, retreated quickly after the 2.30pm decision from the Reserve Bank to raise the cash rate to 3.35 per cent, and the statement from governor Philip Lowe.

The index fell from 7548 points before 2.30pm to 7501 points, meaning shares were down 0.5 per cent.

The Australian dollar, meanwhile, rose from US69.23c shortly before the meeting to as high as US69.51c in response to Lowe’s statement. It had settled back to US69.38 at 3.19pm.

National employer association Ai Group has warned against “overdoing” increases to interest rates.

Chief Executive Innes Willox said the RBA’s decision to raise the cash rate further and to continue to flag its expectations of further increases was sobering.

Australian Industry Group chief executive Innes Willox.

“There are strong signs the desired slowdown in activity is beginning to take effect and as we get further along the path of monetary tightening, the risk of overdoing the rate rises clearly intensifies,” he said.

“It is critical now that businesses, governments and employees exercise moderation in price setting and wages negotiations and avoid fuelling the inflation and inflation expectations that will only increase the likelihood of further increases in interest rates.”