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Australia news live: ‘full steam ahead’ for Aukus deal as Wong and Marles meet Rubio and Hegseth in Washington | Australia news

‘Full steam ahead’ for Aukus deal as Wong and Marles meet Rubio and Hegseth in Washington

The Aukus submarine deal is going “full steam ahead”, Australia and the US have confirmed after a high-level meeting in Washington.

Associated Press reports US secretary of state, Marco Rubio, and defense secretary, Pete Hegseth, met their Australian counterparts on Monday local time for annual talks expected to focus on Indo-Pacific security and countering China’s increasing assertiveness in the region, including in the South China Sea and directed at Taiwan.

Rubio, Hegseth, Australian foreign affairs minister, Penny Wong, and defence minister Richard Marles gathered at the State Department but in remarks before the meeting none mentioned China by name.

“This is a very strong partnership, it’s a strong alliance, and what we want to do is continue to build on it. We think we have a lot of momentum behind this alliance,” Rubio said, hailing cooperation between Washington and Canberra on critical minerals, defence production and troop deployments.

The US president, Donald Trump, and Australian PM, Anthony Albanese, signed a critical minerals deal at the White House in October after China imposed tougher rules on exporting its own critical minerals.

“We have to have critical mineral supplies and supply chains that are reliable, and that are diverse, and not overly invested in one place where they can be used as leverage against us or our partners of the world,” Rubio said on Monday.

Wong said the alliance “has always been to ensure it delivers concrete benefits for our security and prosperity and for that of the United States. And Aukus is central to that: a win for Australia, a win for the US and a win for the United Kingdom,” Wong said. “We are full steam ahead.”

Hegseth echoed her comments, saying that “as we move full steam ahead on Aukus, we applaud Australia’s upcoming delivery of an additional $1bn to help expand US submarine production capacity. We’re strengthening Aukus so that it works for America, for Australia and for the UK.”

Marles said they were “living in a much more contested world, where it really matters to be doubling down with friends and allies and, obviously, America is front and centre and foremost for Australia in that respect”.

(L-R) Richard Marles, Penny Wong, Marco Rubio and Pete Hegseth meet for bilateral talks at the State Department in Washington DC on Monday. Photograph: Anadolu/Getty Images
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Patrick Commins

Patrick Commins

RBA to announce final cash rate decision of the year today

The Reserve Bank is expected to keep the cash rate at 3.6% today, and the focus will be on any clues on whether the monetary policy board thinks it might have to hike in 2026.

Data over recent weeks has shown an unexpectedly sharp rebound in inflation, while national accounts and household spending figures have pointed to an accelerating economy.

Financial markets are now putting a roughly 50% chance of a hike by May, and have fully priced in a move higher by August, according to ANZ.

Economists have also largely abandoned forecasts for rate cuts in 2026, with a handful also predicting a hike next year.

The decision is at 2:30pm, and the RBA governor, Michele Bullock, will give her final press conference of the year an hour later.

Photograph: EyeOfPaul/Getty Images
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