Steep increase in interest rates due, al-Qaeda leader reportedly killed and US asks China to not overreact

The Reserve Bank of Australia is expected to increase the interest rate from 1.35 per cent to 1.85 per cent, an iconic Indigenous centre in Sydney has abruptly shut down and the US says Nancy Pelosi has every right to visit Taiwan.

The Reserve Bank of Australia in Sydney. Source: AAP / DEAN LEWINS/AAPIMAGE

Good morning, it’s Akash Arora here with SBS News’ Morning Briefing.

Interest rate expected to rise

More bad news could be on its way for cash-strapped mortgage holders, with the Reserve Bank of Australia expected to increase the interest rate from 1.35 per cent to 1.85 per cent on Tuesday. This would be the fourth consecutive increase since April when the interest rate was at a record low of 0.1 per cent. The move aims to bring inflation — currently at 6.1 per cent — under control. The expected rise would have a knock-on effect on banks, which will most likely increase the cost of their variable-rate mortgage products. The hike will most adversely affect people who bought property in the past couple of years when low interest rates were but property prices were high.

Al-Qaeda leader reportedly killed in drone strike in Afghanistan

Al-Qaeda leader Ayman al-Zawahiri has reportedly been killed in a CIA drone strike in Afghanistan, US officials told Reuters on Monday. The White House has described the event as a "successful" operation against a target in Afghanistan. President Joe Biden will deliver remarks at 9.30am AEST. Taliban spokesman Zabihullah Mujahid confirmed in a statement that a strike took place and strongly condemned it, calling it a violation of "international principles".

'Their hearts are broken': Iconic Indigenous centre shuts down

The National Centre of Indigenous Excellence in Redfern, Sydney, will officially close on 8 August.

The National Centre of Indigenous Excellence (NCIE) in Sydney's Redfern has abruptly closed, with young First Nations staff reportedly being offered "small amounts" of money to leave quietly. The property is currently owned by the NSW Aboriginal Land Council after it was transferred from the Commonwealth's Indigenous Land and Sea Corporation (ILSC) on 30 June. The ILSC is still in charge of running operations at the site. Staff were notified on Monday morning that services at the fitness and aquatic centres will stop on 8 August. Former NRL star Dean Widders told NITV News busloads of children were turning up to the NCIE for their afternoon programs only to be met with locked gates. "Their hearts are broken," he said.

US tells China Nancy Pelosi has every right to visit Taiwan

The spat between China and the United States over US House Speaker Nancy Pelosi's visit to Taiwan continues, with the White House saying there's no reason for Beijing to turn the potential visit "into some sort of crisis". White House National Security Council spokesman John Kirby told reporters at a press conference in Washington on Monday "the speaker has the right to visit Taiwan". Mr Kirby's comments came just hours after China warned on Monday its military will not “sit idly by” if Ms Pelosi were to visit Taiwan, the self-ruled island claimed by Beijing.

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