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Politics live: Canada to recognise Palestinian state but Chalmers declines to say when Australia will follow suit | Australia news

Canada announces plans to recognise Palestinian state if conditions met

This morning, Canada has announced that it plans to recognise a Palestinian state, putting more pressure on Australia to do the same.

The Australian government has said it’s a matter of “when, not if” a Palestinian state is recognised, but Canada joins key allies planning to do it by September at the UN General Assembly.

In a statement, Canada’s prime minister, Mark Carney, says prospects for a two-state solution have been “steadily and gravely eroded” by the “pervasive threat of Hamas terrorism and its “violent rejection of Israel’s right to exist”, the accelerated settlement building by Israelis and settler violence, and the “ongoing failure by the Israeli government to prevent the rapidly deteriorating humanitarian disaster in Gaza”.

Carney says the plan is conditional, and predicated on the Palestinian Authority’s commitment to reforms including:

The commitments by Palestinian Authority president Abbas to fundamentally reform its governance, to hold general elections in 2026 in which Hamas can play no part, and to demilitarise the Palestinian state.

Canada will increase its efforts in supporting strong, democratic governance in Palestine and the contributions of its people to a more peaceful and hopeful future.

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Key events

Patrick Commins

The Reserve Bank’s deputy governor, Andrew Hauser, says yesterday’s consumer price figures were “very welcome”, in a further signal that the central bank has gained some comfort with the trajectory of inflation and that it will cut rates next month.

Inflation dropped to 2.1% in the year to June, while the RBA’s preferred underlying measure fell to 2.7% – which Hauser said was in line with the bank’s forecasts.

Still, Hauser also flagged that the central bank was in no rush.

Our strategy for some time is to set interest rates to bring inflation back sustainably – that’s an important word – to the midpoint of the 2-3% target range, and to do that through a policy that is gradual, considered, measured.

Financial markets are pricing in a rate cut on August 12, and another by the November boarding.

Jim Chalmers on morning TV refused to comment on likelihood of a rate cut next month.

I try not to make predictions about decisions that the independent Reserve Bank will take about interest rates, but I’m really pleased that inflation has come down so substantially.

It’s a powerful demonstration of the progress that Australians have made together in the fight against inflation.

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