Prime Minister Anthony Albanese has defended his trip to the Caribbean for a Commonwealth leaders’ summit as “worthwhile”, despite dining with royals and visiting a vessel owned by mining billionaire Andrew “Twiggy” Forrest as Australians endured another interest rate increase.
Albanese returned to Australia after travelling to Antigua and Barbuda for this week’s Commonwealth Heads of Government Meeting (CHOGM).
During the official dinner, the Prime Minister joined King Charles III and Queen Camilla for a specially prepared Caribbean menu.
He also attended the launch of the Commonwealth Nature Initiative aboard Mr Forrest’s Green Pioneer, alongside Antigua and Barbuda Prime Minister Gaston Browne and Guyanese President Irfaan Ali.
While Albanese was overseas, the Reserve Bank delivered its fifth interest rate rise of the year, leaving homeowners facing hundreds of dollars in additional mortgage repayments, according to industry modelling.
The Prime Minister was questioned about the increase during his trip and said the government remained focused on strengthening the economy.
Following his return on Saturday, Albanese maintained that the visit had been “worthwhile” and said the cash rate’s rise to an 18-year high would not alter the government’s plans for the Mid-Year Economic and Fiscal Outlook (MYEFO).
“We’ll be consistent. We’ve looked for savings in each and every economic statement, and we’ll do so again in MYEFO,” he said, according to ABC News.
Anthony Albanese said the Commonwealth meeting offered valuable opportunities to speak with UK Prime Minister Andy Burnham and Canadian Prime Minister Mark Carney
Australians faced another mortgage shock on Tuesday while Albanese was abroad, after the Reserve Bank raised interest rates by a quarter of a percentage point. RBA Governor Michele Bullock is pictured
Anthony Albanese (left) met King Charles III (right) and Andrew “Twiggy” Forrest (centre) during his visit to Antigua and Barbuda for CHOGM
He said Labor had prepared a “savings package” for the economic update, although the government has released few details and the measures may not deliver net savings.
“We’re working on all of this,” Albanese said, gesturing towards the documents he was carrying.
Asked by The Australian why Australia’s inflation rate remained above those of comparable countries, Albanese responded: “It’s rising around the world. It was higher [under the former government]. It had a six in front of it when we came to office.”
Defending his attendance at the summit, Albanese said CHOGM allowed leaders to address major issues without the strategic rivalry between the United States and China dominating proceedings.
“I see the relationship between Mark Carney, Andy Burnham and myself as being very important,” he said.
“If there wasn’t a forum that didn’t feature the strategic competition between [the] US and China, and didn’t have authoritarian regimes like Russia involved, you might have to make it up. But there is, it’s called the Commonwealth.”
The gathering concluded without any major policy announcements from Commonwealth leaders.
Albanese also held discussions with Burnham about regional work arrangements for British backpackers. He described the talks as “constructive”, but offered no further details.
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Albanese is shown beside Queen Camilla at the official dinner held during the meeting
Opposition Leader Angus Taylor accused Albanese and Treasurer Jim Chalmers of being “in denial” about the state of the Australian economy.
“We do need to lower government spending,” he said.
“This [inflation challenge] is homegrown. This is specific to Australia because of this government’s failures.”
Albanese had earlier argued that attending the summit was in Australia’s national interest, saying: “At the personal invitation of King Charles, His Majesty, I agreed to come to this meeting.”
Asked on ABC News Breakfast whether he would have accepted the invitation, Taylor said it would “depend on the circumstances”.
“Let me say in any normal circumstances, going to CHOGM would be the right thing for any Prime Minister to do. But these are not circumstances that are normal,” he said.
Albanese is expected to leave Australia again within days for a series of international meetings, including COP31 in Türkiye, ASEAN in the Philippines and APEC in China.
At home, many Australian families are heading into Christmas under mounting financial pressure as elevated interest rates compound the cost-of-living squeeze.
Opposition Leader Angus Taylor indicated that the current economic conditions could have influenced whether he accepted an invitation to the summit
On Tuesday, Australian homeowners suffered another mortgage blow when the Reserve Bank lifted interest rates by a quarter of a percentage point, pushing borrowing costs to a new high as it continues its fight against persistent inflation.
The 0.25 percentage-point increase lifted the cash rate from 4.60 per cent to 4.85 per cent, its highest level since the global financial crisis in 2008.
Canstar modelling indicates that a borrower who took out a $600,000, 30-year mortgage when Labor came to office in May 2022 would initially have faced monthly repayments of $2,399.
After the latest increase takes effect, the monthly repayment will rise to $4,056 — an additional $1,657 a month, or $19,884 over a year.
For a $600,000 mortgage, a rate increase from 2.5 per cent to 6.74 per cent adds $2,120 a month, or $25,440 annually, in interest alone. The comparison assumes the loan balance remains unchanged and does not include principal repayments.
Reserve Bank Governor Michele Bullock declined to predict how high interest rates might go, saying the central bank would continue tightening monetary policy for as long as required.
The RBA acknowledged that economic growth was slowing, but said stubborn inflation and rising global risks — including the war in the Middle East and higher oil prices — justified another rate increase.
Chalmers said earlier this week that Labor accepted responsibility for its role in addressing inflation, while arguing that the conflict in the Middle East had been the main driver of the latest increase.
Finance Minister Katy Gallagher said the government also deserved “an acknowledgement of the hard work we have done over the last four years” to restrain spending.