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‘Scare voters’: Chalmers grilled on rates
The Reserve Bank of Australia raised rates to 3.85% due to inflation driven by strong private demand and supply constraints, with inflation expected to reach 4.2%, RBA said.
- On Tuesday the Reserve Bank of Australia raised the official cash rate by 25 basis points to 3.85 per cent, and Federal Treasurer Jim Chalmers faced grilling in Question Time and on the 7.30 Report about the decision.
- Data shows private demand recovered faster than expected, driven by households and business investment, as supply capacity nears its limits, causing price pressures.
- Inflation is on track to hit 4.2 per cent by mid-year, with wages expected to slip 0.9 per cent and economy growth at 2.1 per cent to September.
- The May budget is now the immediate test for Jim Chalmers, who was pressed about what he can do for households with mortgages facing higher payments, amid voter anger over cost of living.
- Analysts warn that without budget savings and reform, the RBA's rise on Tuesday may lead to multiple hikes over the coming year, while cost-of-living relief ended last month limits fiscal options.
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Question Time Hones in on Inflation as Reserve Bank Lifts Rates
The Reserve Bank’s decision to lift interest rates landed squarely on the first Question Time of parliament this week, shifting the chamber’s focus to mortgages, inflation and responsibility. Opposition Leader Sussan Ley took aim telling Prime Minister Anthony Albanese the average mortgage holder was already paying about $21,000 more a year in interest costs under Labor. “The prime minister promised Australians we had, quote, turned the corner o…
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Coverage Details
Total News Sources12
Leaning Left4Leaning Right4Center1Last UpdatedBias Distribution45% Left, 44% Right
Bias Distribution
- 45% of the sources lean Left, 44% of the sources lean Right
45% Left
L 45%
11%
R 44%
Factuality
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