Live: Canavan says rate hike could be 'straw that breaks the camel's back'

live Federal politics live: Canavan says rate hike could be 'straw that breaks the camel's back' Matt Canavan says a further interest rate hike could be the "straw that breaks the camel's back" for families, blaming government spending for inflation. Follow all the updates in our live blog. Submit a comment or question Live updates Wilson says rising unemployment not the 'sole solution' to curbing inflation Shadow Treasurer Tim Wilson says he doesn't think unemployment rising above 5 per cent is the "sole solution" to fixing inflation. The Reserve Bank of Australia is expected to increase interest rates today, which could bring it to the highest cash rate in 15 years. Wilson has accused state and federal governments of forcing the Reserve Bank's hand with inflationary spending. The shadow treasurer has told ABC News Breakfast if he were in government he would pare back "honeypots" such as the NDIS, home aged care packages and child care. "We need to focus on value for taxpayers' money. It's not that honest taxpayers' money is going to dishonest means, it's also stoking inflation," Wilson says. "This government has continually engaged in denial about the problems of their spending and how it is putting upward pressure on interest rates. The Reserve Bank has consistently said that this is a problem. Now, we need action from the government." Canavan blames government spending ahead of expected rate hike Nationals leader Matt Canavan says today's expected interest hike could be the "straw that breaks the camel's back" for many families. The Reserve Bank of Australia will hand down its interest rate decision today, and it's widely tipped to hike the cash rate. Speaking to News24, Canavan has blamed government spending for fueling inflation, which is one of the reasons keeping interest rates high. "The problem we have as Australians right now is we have a government that cannot admit its problems. If you can't admit there is a problem, how can you fix it?" Canavan says. Good morning 👋 Hello and welcome to our federal politics live blog. It's great to have you join us early on a Tuesday morning. I'm Josh Boscaini live from Parliament House in Canberra, here and ready to bring you all of today's federal politics news. The Reserve Bank will hand down its interest rate decision today, and it's widely expected they will hike rates. If the central bank decides to increase rates by 25 basis points, it will bring the cash rate to the highest in about 15 years. In other news, Greens leader Larissa Waters has announced she'll be stepping down from the party's leadership due to a kidney condition. Time to get this blog on the road. Loading