Key events18m agoChalmers says Australians bracing for 'difficult decision'19m agoWelcomeTess IkonomouAnthony Albanese defended his government’s record in the face of a likely rate hike.The prime minister is in Saint John’s, Antigua and Barbuda, for the Commonwealth heads of government meeting at the request of King Charles.He has faced some criticism for being out of the country during the decision. double quotation markWe work each and every day on cost of living. What I recognise as well is that by engaging in the world, we can deal with our national security interests, but also make our economy stronger.

That’s why we need to engage in the world. Tess IkonomouAsked why Labor can’t guarantee it won’t find net savings in the mid-year budget update, Chalmers told RN the government is undertaking that task this month ahead of December’s release. double quotation markWe are currently working our way through the spending pressures, the economic forecasts, and the savings options to come up with the best, most responsible budget update that we can.

There have been savings in all eight of our budget updates so far. There’ll be savings in the ninth as well.

The powerful expenditure review committee met on Monday, and will convene again on Wednesday to discuss savings, Chalmers said.Treasurer Jim Chalmers. Photograph: Lukas Coch/AAPChalmers says Australians bracing for 'difficult decision'Tess IkonomouThe treasurer, Jim Chalmers, told ABC’s RN Australians are bracing for a “difficult decision” ahead of an expected rate hike.Another rise would likely increase the cash rate to 4.85%, taking it to the highest level in 18 years. double quotation markPeople are under substantial pressure already, and obviously, if rates go up today, that will make things much harder, especially when there are already a number of rate rises in the system and their full effect hasn’t been felt yet.

Regardless of the decision that the Reserve Bank takes independently this afternoon, we know that there is more work to do to make the budget as tight as it can be. WelcomeWelcome to Guardian Australia’s live coverage of the Reserve Bank’s Tuesday board meeting.It is widely expected the central bank will hike interest rates by 0.25 percentage points today to 4.85% – the fifth rate hike this year, and the highest level in 18 years.Let’s begin.