News and politics live updates: RBA governor warns interest rates could rise as Aus inflation remains stubborn

Rio Tinto will share the windfall of its copper bonanza with shareholders after reporting a massive surge in first-half net profit that was underpinned by production growth of the red metal.

The mining giant on Wednesday declared a dividend of $US2.11 a share as net profit for the six months to the end of June rocketed 47 per cent to $US6.67 billion — up from $US4.53b a year earlier — as earnings before interest, tax, depreciation and amortisation leapt 28 per cent to $14.8b.

Chief executive Simon Trott described the first half of the year as “a step-change” in performance.

“Our continued investment in growth drove a 3 per cent increase in copper equivalent production and further strengthened our portfolio diversification, with copper, aluminium and lithium contributing more than 50 per cent of underlying EBITDA,” Mr Trott said.

“Our strong performance is underpinned by accelerating productivity across the business.

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Victoria Premier Ben Carroll has refused to rule out reviewing Labor’s controversial work-from-home laws or reconsidering plans for a statue of former premier Daniel Andrews, saying both issues would be dealt with through the proper cabinet process.

Speaking at his second press conference since becoming premier, Carroll also declined to commit to the future of the Suburban Rail Loop, while leaving the door open to bringing forward Melbourne Airport Rail.

“That legislation is before parliament, and I have nothing answer or say on that today,” Mr Carroll said of the work-from-home laws, adding “work from home is good for families and it is good for workers.”

On the Mr Andrews statue, he said, “I have nothing to say on that, and that is not a priority of mine.”

Addressing the Suburban Rail Loop, Mr Carroll said, “This will be a matter for cabinet, and I am going to run a disciplined proper cabinet process.”

He added, “These are matters for cabinet, everybody knows there’s not a stronger supporter of airport rail. Airport rail will electrify the north-west, it is a game changer, it has been talked about for 100 years. And as premier I am very focused on Airport Rail.”

Victoria Premier Ben Carroll has announced a new workplace protection order scheme aimed at shielding retail and public transport workers from assault, abuse, intimidation and stalking.

Unveiling the proposal alongside Deputy Premier Gabrielle Williams on his first full day in the state’s top job, Carrollunveils major protections for frontline workers said the reforms would help protect frontline staff and crack down on repeat offenders.

“Retail and transport workers keep Victoria running and they must be safe at work,” Mr Carroll said.

“These new powers will protect workers, stop repeat offenders and make it clear that this behaviour won’t be tolerated.”

If passed, the laws would take effect from July 26 next year, allowing courts to ban offenders from workplaces for up to 12 months.

Anyone who breaches an order could face up to two years in prison or fines of up to $50,000. The protections would apply across all retail businesses and specified train, tram and bus operators.

Opposition Leader Angus Taylor has declined to comment on evidence being heard by the NSW corruption watchdog after it was told senior Liberal figures discussed seeking financial backing for the conservative factional group NSW Reformers.

Mr Taylor, who is not accused of any wrongdoing, was questioned about the matter while appearing alongside Nationals leader Matt Canavan in Queensland.

Asked whether he had made any financial contribution to the group, Mr Taylor said he had not.

Pressed on whether he was aware of allegations the group was attempting to engage in branch stacking, he refused to comment on the ICAC proceedings. “I’m not a party to the proceedings. No payment was made,” Mr Taylor says.

Iran has proposed to Oman a temporary arrangement to reopen the Strait of Hormuz under which one direction of traffic would pass through Iranian waters and part of the opposite route would also be in Iranian waters, Deputy Foreign Minister Kazem Gharibabadi has told state television.

Gharibabadi said Iran rejected an Omani proposal for an equal division of transit routes between the two countries, saying such a plan did not address Iranian security concerns until long-term regional stability is achieved.

He said the Strait of Hormuz would remain closed if Oman rejected Iran’s proposal, adding that Iran had never recognised the southern route along Oman’s coast.

Gharibabadi also said Iran had made it clear to Oman that it no longer recognised the Traffic Separation Scheme (TSS), arguing that this pathway roughly in the middle of the waterway lies mostly within Omani waters and runs contrary to Iran’s need to monitor transiting vessels after being attacked by the United States and Israel in late February.

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Treasurer Jim Chalmers has held his first phone call with newly appointed UK Chancellor John Healey following last week’s leadership reshuffle under Prime Minister Andy Burnham.

Dr Chalmers said the pair discussed the close relationship between Australia and the UK, as well as shared economic and defence priorities.

“He’d have a lot on his mind and the briefing would be really intensive so it’s good of him to make time,” Dr Chalmers said.

“At a time of great uncertainty there’s no shortage of challenges in the global economy and we are more likely to rise to the occasion when friends like Australia and the UK work together.”

Dr Chalmers said he looked forward to meeting Healey in person and had heard “very good things” about him from Defence Minister Richard Marles, who previously worked alongside Mr Healey in the defence portfolio.

Nationals leader Matt Canavan says he would have rejected an offer of a paid European trip after One Nation leader Pauline Hanson revealed mining billionaire Gina Rinehart covered her flights from London to Sicily, via Rome, as well as tickets to a luxury fashion parade in Italy.

Senator Hanson updated her parliamentary register of interests on Tuesday, confirming she personally paid for her accommodation, meals and other daily expenses during the July 11 to 16 trip.

Speaking to Channel Nine, Mr Canavan said he would have declined the offer.

“If a large benefactor offered me a holiday I’d say, ‘Look, I’d prefer you just put that money into changing the government because that’s what our country needs,’” Mr Canavan says.

“The economy is in a really dire strait. Small businesses, some real estate agents I spoke to are just pulling their hair out. They’re working really hard. They obviously can’t afford these holidays over to the Mediterranean.”

Inflation data could dash the chances of another Reserve Bank rate hike as governor Michele Bullock says higher interest rates are slowing the economy down as intended.

Underlying inflation has held above the central bank’s target of 2.5 per cent since the COVID-19 pandemic.

Analysts expect data to be released by the Australian Bureau of Statistics on Wednesday will show the Reserve Bank’s preferred trimmed mean measure climbed even higher to 3.7 per cent in the June quarter.

The past four years of above-target inflation had been a cautionary tale for the Reserve Bank board, Ms Bullock said on Tuesday.

“The longer it is out of target, the more concerned that the board becomes,” she told a fundraising lunch at the Anika Foundation in Sydney.

“I think it is quite at the front of their minds. In the May forecast we had it coming back under three (per cent) towards the end of 2027, and that’s a long time to be above target.”

Ms Bullock said if the oil price shock from the Middle East conflict dragged on and expectations of price pressures became more ingrained, she was concerned the Reserve Bank’s job of bringing inflation under control would become even harder.

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Fears of another interest rate rise have emerged after Reserve Bank governor Michele Bullock warned the central bank is prepared to raise rates again if needed, as Australia’s inflation remains stubborn.

Appearing on Sunrise on Wednesday morning, Employment and Workplace Relations Minister Amanda Rishworth was forced to defend the Albanese Government’s handling of the economy, while Nationals Senate leader Bridget McKenzie argued Labor’s spending had left the Reserve Bank with little choice but to keep interest rates higher for longer.

Ms Bullock’s warning comes ahead of key inflation data due to be released on Wednesday, with economists expecting underlying inflation to remain above the Reserve Bank’s target range.

Asked whether the Government should be doing more to bring inflation down, Ms Rishworth stressed that interest rate decisions were a matter for the Reserve Bank’s independent board.

“We are doing what is in our power to support Australians when it comes to cost of living, when it comes to being responsible with the Budget and improving productivity,” she said.

Ms Rishworth pointed to recent Budget measures aimed at boosting productivity, including investment in skills and permanent free TAFE, while acknowledging inflation had remained higher than hoped amid difficult global economic conditions.

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