The New South Wales Opposition has criticised the state government following the Reserve Bank’s decision to raise the cash rate to 4.10 per cent, linking the increase to what it describes as an ongoing inflation problem.
The 25 basis point rise marks the second consecutive increase this year and comes as households face higher borrowing costs.
NSW Liberal Leader Kellie Sloane said the decision would add pressure on families already managing rising expenses. “This is another brutal announcement for NSW families who are already at breaking point, making the impossible choices between paying bills, buying essentials, and making mortgage repayments,” Ms Sloane said.
She said expectations of improved economic conditions had not been met. “NSW families were promised life would be easier under Labor, but the reality is that they costs are up, our state’s economy is slowest economic growth in the nation, and now a second straight rate rise this year.”
The Opposition pointed to a range of economic indicators, including inflation in NSW at 3.9 per cent compared with a national rate of 3.8 per cent. It said electricity costs had risen by 30.8 per cent and utilities by 25.7 per cent, while state taxes had increased by 30 per cent.
It also cited business conditions, stating that 6,200 NSW businesses entered insolvency in 2025 and that the state recorded economic growth of 0.9 per cent.
Shadow Treasurer Scott Farlow said the rate rise reflected policy decisions. “This rate rise is a consequence of bad economic decisions, and NSW families are paying the price,” Mr Farlow said.
He said mortgage holders would feel the impact directly. “A family with a $500,000 mortgage now must find $1000 this year to cover this rate rise, let alone the previous rise.”
Mr Farlow said broader conditions could worsen. “The sad reality is that NSW families are being punished for Labor’s economic mismanagement, and with global instability now added to the mix, things are sadly only set to get worse. This is Labor’s economic legacy and NSW families deserve better.”
The Reserve Bank’s decision has intensified debate over the causes of inflation and the role of government spending, with political leaders offering contrasting views on the economic outlook.
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