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Last August, to the relief of many homeowners, the Reserve Bank’s governor, Michele Bullock, announced a cut in interest rates and expressed confidence that inflation was heading in the right direction. But on Tuesday, the RBA hiked rates for the first time in over two years, raising the cash rate by 25 basis points to 3.85%. Guardian columnist and chief economist of the Australia Institute, Greg Jericho, talks to Nour Haydar about what the rate hike means, why he sees it as ‘cowardly’ and what it all has to do with the Ashes

Parliament returns today and the benches might look a little bare on the opposition’s side of the chamber, with the Liberals left with only 28 votes after last week’s split from the Nationals. Political editor Tom McIllroy speaks to Reged Ahmad about whether the Liberals and Nationals can get back together, and if the prime minister can use this distraction to push through big reforms

When a homemade bomb was allegedly thrown into a crowd of more than 2,000 people at an Invasion Day rally in Perth last week, police said that, had it gone off, it had the potential to cause mass casualties. But in the hours and days afterwards many questioned how police, media and political leaders responded to the alleged attack and criticised what they said was selective outrage that dismissed the violence and racism First Nations people face. Indigenous affairs correspondent Sarah Collard speaks to Nour Haydar on the bomb threat at Boorloo and the sadness and fear that lingers.

The search for Australia’s best children’s picture book is on! Vote now and every day until 5 February for your favourite from 50 of the best, as chosen by Guardian readers. The deputy culture editor, Sian Cain, speaks to author Graeme Base about how he wrote his bestselling and beloved books Animalia and The Eleventh Hour, and why he set out to challenge curious kids

After weeks of federal insurgency, Minnesota fought back, and it seems Donald Trump has lost faith in the people running his ICE operation in the state. So where does this leave Trump’s ‘ICE patriots’? How do Republicans unite over immigration policies that kill Americans? And where does it leave the far-right agitators in Trump’s cabinet? Jonathan Freedland speaks to George Conway, a founding member of the Lincoln Project, who is running for Congress, about what happens next