Struggling mortgage holders won\u2019t be seeing rate relief any time soon as the Reserve Bank of Australia has said they are looking for \u2018softer growth\u2019 in Government spending before it could cut interest rates.<\/p>\n\n\n\n
The Reserve Bank of Australia (RBA) told the Cost of Living Committee at its hearing in Sydney, that it had almost doubled its forecast of Government spending since Labor\u2019s Budget, increasing from 2.1% to 4%, confirming that Government spending is driving inflation.<\/p>\n\n\n\n
AMP economist Dr Shane Oliver told the Committee that wages had gone backwards by five per cent, and that the economy was at a risk of recession. He went on to tell the Committee that if Labor\u2019s spending was lower, the RBA would be able to consider cutting rates.<\/p>\n\n\n\n
Alan Oster, chief economist at NAB, told the Committee that sectors like manufacturing, hospitality, and retail were feeling the pinch of higher interest rates and lower consumer spending most acutely.<\/p>\n\n\n\n
Both Dr Oliver and Mr Oster described Labor\u2019s spending as \u201cbad timing\u201d and \u201cunhelpful\u201d.<\/p>\n\n\n\n
Economics professor Richard Holden told the Committee that the Labor Government had delivered three very expansionary Budgets that were \u201cputting upwards pressure on inflation.\u201d He went on to say that the Government\u2019s temporary measures that lowered headline inflation were a \u2018trick\u2019 and still added to demand.<\/p>\n\n\n\n
Judo Bank economist Warren Hogan agreed, and said that the only way to get inflation under control was for the Government to get the policy settings right, including by getting more flexibility into the labour market.<\/p>\n\n\n\n
The Business Council of Australia (BCA) highlighted the cost of doing business crisis that was also caused by higher inflation, noting record insolvencies experienced in Australia in recent months. Chief Economist Stephen Walters echoed the economists\u2019 comments that a flexible industrial relations system was key to lowering costs and passing on savings to consumers.<\/p>\n\n\n\n
Chair of the Committee, Senator the Hon Jane Hume said that the Albanese Government is ignoring the warnings of experts and running the Australian economy into the ground.<\/p>\n\n\n\n
\u201cInstead of showing restraint in their fiscal policy to be in line with the RBA, the Albanese Government has increased spending by $315 billion. That\u2019s not what the RBA wants to see.<\/p>\n\n\n\n
\u201cThe RBA has now pushed out any hope of a rate cut this year, and in fact they even considered lifting rates yesterday. That brings no comfort to Australian households who are struggling to cope with these higher for longer interest rates.<\/p>\n\n\n\n
\u201cAustralians are poorer under Labor, and from the evidence we heard today, it\u2019s clear that there is no end in sight to the financial pain households and businesses are facing right now.\u201d<\/p>\n\n\n\n
Coalition Senators Smith, Canavan and Kovacic called on the Albanese Government to act on the warnings from the RBA and the economists who gave evidence to the Committee today for the sake of all Australian households and businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"
Struggling mortgage holders won\u2019t be seeing rate relief any time soon as the Reserve Bank of Australia has said they are looking for \u2018softer growth\u2019 in Government spending before it could cut interest rates. The Reserve Bank of Australia (RBA) told the Cost of Living Committee at its hearing in Sydney, that it had almost … Continue reading “Labor’s spending to fuel inflation crisis for longer”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-28343","post","type-post","status-publish","format-standard","hentry","category-aussie"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/28343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=28343"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/28343\/revisions"}],"predecessor-version":[{"id":28344,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/28343\/revisions\/28344"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=28343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=28343"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=28343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}