Treasurer Jim Chalmers
has accused the Reserve Bank of “smashing the economy” with interest rate hikes amidst a cost of living crisis.
has accused the Reserve Bank of “smashing the economy” with interest rate hikes amidst a cost of living crisis.
New GDP figures are expected to show a slow 0.2% rise in the Australian economy for the June quarter.
Chalmers’ comments come after tensions between the RBA and the federal government emerged, culminating in the Treasurer’s outspoken statement on the issue.
Chalmers remarked on the potential impact of global uncertainties and rate rises on the upcoming national accounts, stating that a soft economy was anticipated at budget time.
The Australian reports.
The Australian reports.
Chalmers highlighted the government’s efforts to address inflation through cost-of-living relief in a challenging economic environment.
While there were predictions of interest rate slowdowns by major bank executives, RBA Governor Michele Bullock dismissed these hopes as premature.
Despite no rate hikes in August, the RBA expects inflation to reach 2-3% by December 2025, emphasizing a continued cautious approach to monetary policy.
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