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‘Big Driver’: Chalmers Plays Trump Card Ahead of Rates Call
Chalmers said oil prices are rising from the conflict, while markets priced a 90% chance of an RBA rate rise on Tuesday.
- The Reserve Bank of Australia is widely expected to lift interest rates on Tuesday to a 15-year high, marking the fourth increase this year. Treasurer Jim Chalmers attributed the inflation challenge primarily to the prolonged war in the Middle East.
- Labor released fresh budget figures on Monday showing a $6 billion improvement in the deficit, now $22.3 billion. Tax receipts as a proportion of GDP rose to 24.1 per cent, driven by resilient stock markets and superannuation fund gains.
- Shadow Treasurer Tim Wilson accused Chalmers of a "spending addiction" fueling inflation and higher rates. Nationals leader Matt Canavan warned the hike could be the "straw that breaks the camel's back" for struggling families.
- Bank governor Michele Bullock suggested the jobless rate may need to rise to 5 per cent to curb inflation. Chalmers countered he is "reluctant to blame the workers of this country" for the economic challenge.
- Economists await fresh inflation data on Wednesday, with headline inflation currently at 3.5 per cent. Warwick Smith, research director at the Centre for Policy Development, says Australia relies too heavily on the "blunt" instrument of interest rates alone.
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13 Articles
13 Articles
Treasurer blames Middle East war for rate hikes
Treasurer Jim Chalmers is under fresh fire for blaming the war in the Middle East for fuelling inflation, while ignoring runaway government spending, as the Reserve Bank prepares to slug households with another rate rise.
·Southbank, Australia
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Coverage Details
Total News Sources13
Leaning Left4Leaning Right3Center3Last UpdatedBias Distribution40% Left
Bias Distribution
- 40% of the sources lean Left
40% Left
L 40%
C 30%
R 30%
Factuality
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