One Nation leader Pauline Hanson has ripped into the Albanese government over the state of the Australian economy, saying the “shocking” rate rise proved Labor cannot “rein in its spending”.
On Tuesday, the Reserve Bank of Australia has increased the cash rate by 0.25 per cent to 3.85 per cent in a unanimous decision by the central bank’s board.
For the average household, the 0.25 per cent rate increase will add about $100 per month to their loan.
In a social media post after the decision, Ms Hanson said the rate increase was the fault of the Labor government.
“Let me tell you, the median house price in Australia is just shy of a million dollars,” Ms Hanson said.
“This government has driven up the cost by their overspending.
“They are out of control.”
In an accompanying statement, Ms Hanson said mortgage holders and renters would be further out of pocket, while small businesses were failing at a “record rate”.
“Data shows 80 per cent of new jobs created in Australia are government-created jobs – meanwhile, small businesses are failing at a record rate,” Ms Hanson wrote.
“Today’s announcement is a shocking outcome for anyone with a mortgage or renting.”
Ms Hanson said Australians need a government that will “rein in their spending” and bring down inflation to a manageable level so that people could “own their own home”.
“Saying that you’re going to have a five per cent deposit, then the increase today, means you’re going to have a bigger deposit for your home loan – and a lot of Australians haven’t got it,” Ms Hanson said.
“I feel for Australians.
“But you can’t thank this Labor Party for this. They’re the ones who’ve caused this.”
In November, the Albanese government’s five per cent deposit scheme was predicted to push housing prices up in 2026.
Treasury had previously forecast the deposit scheme would put upward pressure on house prices, but only by about 0.5 per cent over six years.
Ms Hanson said the Albanese government “can’t have a surplus” with the level of spending.
“We’ve got a debt of $1.2 trillion, they’ll never rein in their spending and you will suffer more and more,” she said.