Australian PM’s approval drops as RBA sees no near-term rate cut

AUSTRALIAN Prime Minister Anthony Albanese’s approval rating fell to the lowest level since he took office in 2022 as the central bank signalled it will not join global peers in cutting interest rates, suggesting no relief is in the offing for voters struggling with the cost of living.

Dissatisfaction with Albanese’s performance advanced three percentage points to 54 per cent in the latest Newspoll survey released by The Australian newspaper, the worst result since his centre-left Labor government was elected in 2022. The prime minister’s approval rating slid two points to 41 per cent.

On a two-party preferred basis, Labor is tied with the centre-right Liberal National opposition at 50-50, a result that if replicated at an election would likely force one of them to govern with the support of minority parties.

Albanese’s faltering approval ratings come as Reserve Bank of Australia (RBA) officials make clear that the key rate is likely to remain at a 12-year high of 4.35 per cent for the rest of this year. Policymakers are struggling to rein in inflation that’s easing more quickly offshore, with the US expected to cut rates this month.

Sticky inflation and the RBA’s elevated rates have left many Australians struggling with the cost of living pressures, and polls show they are growing impatient with the government for more relief.

The Newspoll survey comes ahead of the release of second-quarter GDP data on Wednesday (Sep 4) that are expected to show Australia’s economy expanded an anemic 0.2 per cent over the three months, and just 0.9 per cent from a year prior.

Polling by Redbridge, cited by the Australian Broadcasting, found only 24 per cent of Australians could name a government policy that had improved their lives. That’s despite Albanese’s administration announcing tax cuts, power bill subsidies and university debt relief in the past year alone.

At the same time, the Newspoll survey found most voters expected that inflation would be high no matter who was in power, with 41 per cent saying it would be about the same as it is now under a Coalition government. Just 24 per cent of voters said they believed inflation would be lower under Liberal Party leader Peter Dutton. BLOOMBERG