The RBA’s decision to lift interest rates by 0.25% on Tuesday due to concerns that inflation is likely to remain higher for longer than previously thought. It was the 13th hike in the Bank’s tightening cycle, and the first from new RBA governor Michele Bullock. In explaining her decision, Bullock noted that inflation is more persistent than the RBA expected just a few months ago with high fuel prices the price of services contributing to the inflation picture. Shortly after the rates decision was announced the Treasurer Jim Chalmers faced reporters, noting the pain the decision would cause Australian families but emphasising the cost-of-living relief the government is rolling out that it argues is also putting downward pressure on inflation. The Opposition accuses the government of having its foot on the fiscal accelerator while the RBA is trying to apply the brakes, although you won’t hear Coalition members get too specific when they are asked by journalists where the government should be making cuts to aid in the fight against inflation.

Tuesday’s rates decision overshadowed Anthony Albanese’s successful trip to China – the first for an Australian PM in seven years. The early signs are promising – annual leaders’ meetings are back on the agenda and the government is quietly confident that the remaining tariffs on Australian exports will soon be removed. The Prime Minister couldn’t bring himself to say that he trusts President Xi, but at least we’re talking again. Anthony Albanese went straight from Beijing to the Pacific Islands Forum – where he’s announced an historic agreement with Tuvalu. Australia will take a steady stream of migrants from the Pacific nation - and in return will have a veto over any security agreements struck.

The panel Waleed Aly, Katina Curtis, and Jennifer Hewett discuss all these issues, plus the massive Optus outage, and the unexpected High Court ruling on indefinite detention. David Speers interviews Foreign Minister Penny Wong about Australia’s big week on the global stage, and the ongoing Israel-Gaza war. Mike Bowers talks the week in pictures with cartoonist Cathy Wilcox.

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