Tony Burke due to speak in Brisbane
Donald Trump’s dramatic announcement about the granting by Australia of asylum to five Iranian women footballers was the big breaking news of the night.
Trump said he had spoken to Antthony Albanese who had told him the news but added that other members of the team felt they had to return home.
We are expecting Tony Burke, the home affairs minister, to give a statement about the women shortly in Brisbane, when we can hope that he will clarify the situation.
In the meantime, here’s our news story:
Key events
‘Significant risk’ of RBA interest rate hike next week, economists warn
Luca Ittimani
Surging oil prices have raised the risk of the Reserve Bank hiking interest rates in a week’s time, economists have warned.
Traders bet heavily on interest rate rises on Monday after oil prices surged to US$115 a barrel. Markets expect rates will now stay higher for longer, with one indicator, Australian three-year bond yields, rising to a new record high for the decade.
The next rise could come as soon as March because of the inflationary lift in petrol prices, combined with recent data suggesting the economy is running hot, UBS economists said on Monday. It had been more likely the RBA would wait until May, they wrote in a note, but:
The data … as well as now higher energy prices, means there is still a significant risk of an earlier hike.
The rate-setting board will make a decision next Tuesday, 17 March. Fears of a rate rise have risen since the RBA governor, Michele Bullock, last Tuesday said every meeting was “live”. Her remarks showed the bank was ready to lift rates again, Warren Hogan, economic adviser at Judo Bank, told Guardian Australia:
Her tone had shifted radically … The oil price response [and] the risk that it opened up in their thinking was quite severe.
However, NAB’s chief economist, Sally Auld, said it was “too early” for the RBA to know whether a rate hike was needed, so markets had “over-priced” a March rate hike. In a worst-case scenario, the RBA may even have to cut rates, Auld said, pointing to the prospect of a global recession caused by a prolonged conflict and high oil prices.
Australia should ‘consider’ requests from Gulf nations for military assistance, shadow defence minister says
Caitlin Cassidy
The shadow defence minister, James Patterson, says joining the ongoing war in the Middle East “would have to meet an incredibly high bar” but Australia should “consider” any requests from Gulf countries for military assistance.
Cabinet’s national security committee met yesterday to consider requests for Australia to provide help to countries feeling the brunt of Tehran’s missile attack, sparked by bombings ordered by the US president and Israel. Appearing on ABC’s 7.30 program last night, Patterson said he had requested to be briefed on the meeting.
He said Australia “should consider” the Gulf countries’ request but also ensure it didn’t interfere with national interests.
Australia’s core national interest is decided in the Indo-Pacific … This by the sound of it … [is] a friendly nation to Australia, perhaps a Gulf state, that has been on the receiving end of some of the indiscriminate rocket fire from Iran … has asked for our assistance.
I think we should consider that request, although we have to carefully consider whether or not we have the capabilities available to contribute and that it would not in any way detract from our own national interests.
Patterson also called for defence spending to be increased from the 2% of GDP it was increased to by the former Coalition government. The US president, Donald Trump, has pushed Australia to ramp up spending to 3.5%, which it has so far resisted.
Tony Burke due to speak in Brisbane
Donald Trump’s dramatic announcement about the granting by Australia of asylum to five Iranian women footballers was the big breaking news of the night.
Trump said he had spoken to Antthony Albanese who had told him the news but added that other members of the team felt they had to return home.
We are expecting Tony Burke, the home affairs minister, to give a statement about the women shortly in Brisbane, when we can hope that he will clarify the situation.
In the meantime, here’s our news story:
EU to sign defence partnerships with Australia and others, Kallas says
The European Union will sign defence partnerships with Australia, Iceland and Ghana in the coming days, Reuters has reported EU foreign policy chief Kaja Kallas saying on Monday.
“There are many other interested countries knocking at our door,” Kallas added in a speech in Brussels.
You can read more about the EU’s shift to, in the words of the EU chief, Ursula von der Leyen, “a more realistic and interest-driven foreign policy” here:
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer, with the top overnight stories before Krishani Dhanji takes up the running.
Donald Trump’s dramatic announcement about the granting by Australia of asylum to five Iranian women footballers was the big breaking news of the night. We’ll have the latest in a moment.
The ASX share market is expected to open down another 0.5% this morning after a fall in stocks in Europe and the US overnight on the back of continued war in the Middle East and surging oil prices.
More coming up, including the threat of higher interest rates.