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Expert urges RBA governor to blame government spending for rate hikes
Published 2 weeks, 3 days ago
Description
Economic director at Compare the Market has written an open letter to Reserve Bank Governor Michelle Bullock ahead of next week's RBA meeting, where an 88% chance exists of a fourth rate hike this year bringing the cash rate to 4.6%. The letter argues that inflation is being driven by government spending in the Cabinet Room rather than consumer activity, with government spending as a share of GDP currently at 26.8%, the highest level since 1986. Pressure mounts on Treasurer Jim Chalmers to reduce government spending as money markets anticipate the rate increase.
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