Michele Bullock says ‘we are poorer and there is no way out of it’ after rate rise – as it happened

Get our breaking news email, free app or daily news podcast Thanks for joining us today. Here’s a reminder of the day’s top stories: The Reserve Bank has increased its official interest rate to 4.35%, as prices rise at their fastest pace since 2023. The Reserve Bank of Australian governor, Michele Bullock, says “Australians are poorer” because of the energy crisis linked to the Middle East conflict. The federal treasurer, Jim Chalmers, says the RBA’s decision to raise the cash rate will “make it tougher” for Australians already paying a “hefty price” for the war in the Middle East. The antisemitism royal commission has continued, with the inquiry hearing from a witness about children “saying heil Hitler and putting up their arm in a salute”. Victoria has recorded a surplus for the first time since the pandemic but the state’s financial recovery remains uncertain with debt forecast to near $200bn in coming years amid global uncertainty. NSW police have confirmed the deaths of three people including two Marine Rescue volunteers, as the search operation after a boating incident in waters off Ballina overnight is suspended. Four Australians are stuck on a luxury

May 5, 2026 → May 5, 2026