US EditionTreasurer Denies Impact of ‘Jimflation’ as Interest Rate Rise Tipped
Treasurer Jim Chalmers attributes inflation to private spending while the Reserve Bank of Australia plans a 0.25% rate hike reducing borrowing power by $12,000, Canstar analysis shows.
- On Tuesday the Reserve Bank of Australia is widely expected to lift the cash rate by 25 basis points at 2:30pm, with millions of mortgage holders bracing for higher repayments.
- Critics have framed the debate as 'Jimflation', blaming government spending, but Treasurer Jim Chalmers maintains private spending surged ahead of public spending last year.
- Households report that the maximum loan for an average Australian wage of $104,807 could fall by about $12,000 if rates rise 0.25 percentage points, prompting concerns over affordability.
- On the political front, calls for public spending cuts came from business leaders, while Jim Chalmers defended targeted relief measures on ABC's Radio National Breakfast.
- Economists warn that a single hike may not be the end as Australia's inflation now sits above peer countries including the UK, US, Germany, Japan, Canada and France.
12 Articles
12 Articles
Interest rate rise ends two-year pause
The Reserve Bank of Australia has ended a two-year hiatus by raising interest rates to 15 per cent, sparking a fierce political debate over whether government spending or private demand is fuelling persistent inflation. While the Treasurer defends the budget and points to external pressures, the Opposition and the Greens argue that current policy settings are punishing everyday Australians and ignoring alternative economic levers.
Treasurer defends government spending ahead of expected rates hike
Ahead of today's expected interest rates hike, Treasurer Jim Chalmers has insisted government spending is not behind Australia's stubbornly high inflation. Millions of mortgage holders are bracing for a blow to their finances today, with the Reserve Bank of Australia tipped to raise interest rates.Economists and the big four banks have forecast the central bank at 2.30pm will announce a 0.25 percentage point hike in the cash rate to 3.85 per c…
Treasurer Jim Chalmers on the likelihood of an interest rate rise today - ABC listen
72% - that's the likelihood of an interest rate rise today - according to share market expectations. Higher-than-expected inflation data last week could force the Reserve Bank's hand testing federal government claims that it's been managing cost of living pressures. GUEST: Jim Chalmers, Treasurer PRODUCER: Jason Whittaker
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