Victorian treasurer Jaclyn Symes says the state government can deploy cost-of-living support if interest rates increase.
Victorian treasurer Jaclyn Symes says the state government is monitoring the Reserve Bank’s interest rate decision and stands ready to support households if borrowing costs rise.
Financial markets and most economists expect the Reserve Bank of Australia to lift the cash rate target later today, with forecasts pointing to an increase from 3.6% to 3.85%.
Speaking ahead of the decision, Symes said she would not comment on the RBA’s deliberations but confirmed the government had policy tools available to respond.
“We have levers. We have the ability to support people through cost-of-living measures,” she said, adding that such measures were likely to be considered in the upcoming state budget.
Symes said higher interest rates could also affect the state’s fiscal position and would be factored into budget planning.
“That’s something that we have to factor in and you’ll see that in the deliberations of the budget,” she said.
Victoria’s mid-year budget update, released in December, showed a projected operating surplus of $710m in 2025–26, up from the $600m forecast in May. Net debt was forecast to marginally improve across the forward estimates, reaching $192bn by 2028–29, around $2bn better than projected in May’s budget.
