Bullock defends RBA as big four banks all pass on rate rise; Historic Australian defence properties to be sold off
Independent MP Zali Steggall said the government must take responsibility for high government spending as a factor driving up inflation, following the Central Bank’s decision to raise interest rates yesterday.
“We need to look at the factors driving inflation. Of course the RBA has determined that private sector spending is too high, but we must be clear that government spending has now risen to 28 per cent of GDP,” he told Nine’s. Today.
“What are we spending it on, what is beneficial and supportive to the Australian people? And I think that’s where we really need to ask the government the question. Where does it need to reorient its spending priorities?”
Steggall was joined by Nationals Senator Matt Canavan, who said: “It’s a bad day for Australian homeowners who are facing a huge, massive increase in mortgage payments due to this mismanagement of our economy.”
Following its first meeting of the year yesterday, the RBA increased the cash rate by a quarter point to 3.85 per cent, adding $100 a month to a $600,000 mortgage repayment.
This follows a staggeringly high inflation reading of 3.8 per cent for the 12 months to December and unemployment falling to 4.1 per cent.
