Treasurer Jim Chalmers has defended his Government’s work on tackling inflation as Australian’s brace for yet another rate hike.
He appeared on ABC News Breakfast on Tuesday morning ahead of the Reserve Bank of Australia releasing their decision on interest rates.
While acknowledging that people were under “substantial pressure”, he maintained that the Labor government were focused on inflation.
“Obviously, people are already under very substantial pressure, and an interest rate rise would add to the pressure that a lot of Australians are feeling,” Dr Chalmers said.
“From my point of view, from the government’s point of view, we recognise the independence of the Reserve Bank, and we’re focused, on our part, in the fight against inflation, which is to manage the Budget responsibly, provide cost-of-living relief in an ongoing way, and also to deal with some of these longer-term challenges in our economy.”
Much of the speculation around the RBA decision indicates there will be a rate hike for the fourth time this year when its two-day board meeting finishes up on Tuesday.
It would put interest rates at a 15 year high.
“It is the case that, when interest rates go up, it does put extra pressure on people, just as it puts extra pressure on people when the unemployment rate ticks up as well,” the Treasurer said.
He said it was possible to keep unemployment rates low while achieving “lower and more steady inflation”.
“That’s the Reserve Bank’s objective, and it’s the government’s objective too,” he said.
He took the opportunity to spruik the government’s Budget progress, which was released yesterday.
“There is always more work to do,” he said.
“But it’s really important to remember that this inflation challenge in our economy has a number of sources.
“We do have an inflation challenge which is made much, much worse by developments in the Middle East.”
He said the conflict meant Australians were paying “a very hefty price”.
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