Australia news LIVE: Bullock blames domestic spending for rate hike, inflation as government insists global factors to blame; No explosives found inside vans searched in UK terror probe

Opposition Leader Angus Taylor has attributed the Reserve Bank's recent interest rate hike to home-grown inflation. Speaking to Channel Nine, Taylor urged the government to curb Commonwealth spending. He pointed out that inflation in Australia has persisted before the Middle East war and the associated oil shock. Reserve Bank Governor Michele Bullock explained that domestic capacity pressures contributed to the inflation, with oil shock adding to the issue.

Bullock stated that demand for goods and services, including those driven by AI investments, has grown faster than businesses can meet, leading to price increases. The government's spending reached 26.9% of GDP last financial year, the highest level since the 1980s, aside from the pandemic.