Treasurer Jim Chalmers stated he wouldn’t pre-empt choices made by the Reserve Financial institution board.
Yesterday the RBA board lifted the official money price by 0.25 proportion factors to an 11-year excessive of 4.1 per cent, earlier than in the present day’s nationwide accounts knowledge confirmed the financial system grew by simply 0.2 per cent over the primary three months of the 12 months.
“I don’t second-guess the selections taken by the Reserve Financial institution. I imply, clearly, now we have the identical goal in terms of getting on high of this inflation problem. I believe [the] Reserve Financial institution acknowledged that as properly,” he stated.
“All of us need to see inflation reasonable as rapidly as it might probably, and we have to stability that in opposition to all of our different targets of the identical time.”
RBA governor Philip Lowe spoke about yesterday’s price rise determination in a speech earlier this morning. Chalmers stated the central financial institution was in a position to clarify its personal decision-making.
“The purpose I made yesterday and the purpose I’m pleased to make once more in the present day is when Australians are below the pump, individuals discover it laborious to grasp the choice that was made independently yesterday and, as we noticed in the present day, the governor has alternatives in the present day, and it’s an excellent factor, to clarify and defend the selections the board takes independently,” Chalmers stated.
“I believe that’s self-evident and due to this fact uncontroversial to level out that when rates of interest go up, it makes life more durable for individuals. I believe that may be a reality.”