Australia news LIVE: Strait of Hormuz to open; Australia hit by post-budget economic pessimism; Expanded shark drones after attack

Shadow treasurer Tim Wilson called the RBA’s decision to keep interest rates on hold “incredibly disappointing”.

“Australians households are doing it so tough right now,” Wilson told Sky News.

“What they were looking for was relief, but because the government keeps stoking inflation, taxing inflation, spending the inflation and keeping the cycle going, interest rates have persisted.”

Asked if it would have been responsible for the RBA to cut rates, Wilson said the RBA had its hands tied by a government that couldn’t “control its spending addiction”.

Wilson said that once the Iran war and associated cost of living impact had subsided, inflation would still be too high due to the government’s spending.

The Bureau of Meteorology has declared an El Niño event in the Pacific Ocean.

El Niño typically brings drier conditions to central and eastern Australia in winter and spring.

The last El Niño event developed in spring 2023 and lasted into early 2024.

The latest long rang forecast for July to September showed rainfall was likely to be below average across parts of southern and eastern Australia and temperatures above average in most areas, except parts of the north.

Ahead of the BoM’s declaration, the Climate Council warned that climate change was exacerbating the effects of the El Niño and La Nina weather events.

Read more about how El Nino will be amplified by climate conditions.

Michele Bullock spoke to the media after the RBA opted to keep interest rates on hold.

Watch below.

Treasurer Jim Chalmers has defended the government’s record on inflation as Australians continue to struggle with the cost of living.

The RBA kept interest rates on hold despite inflation remaining above its 2-3 per cent target.

“Inflation is much, much lower than it was when we came to office. When we came to office, it was north of 6 per cent and surging. We have made some good progress,” Chalmers said.

Asked about the role the government’s economic policies have played in the growing popularity of One Nation, Chalmers said: “Obviously, when people are under pressure, they will express that in a range of ways, including in opinion polls.

“We understand that the pace of change is accelerating in our economy and in our society.

“We understand that the global uncertainty is intensifying, and people have got legitimate concerns about where they fit in that story of churn and change, and governments have got a choice whether to … deny those legitimate concerns or to try and act to address them, and we’re trying to address them.”

Treasurer Jim Chalmers addressed the media after the RBA kept interest rates on hold.

Watch below.