\u201cThe Reserve Bank has been forced to raise interest rates on Australian families and small businesses for the 17th time under the Albanese Labor government because the Taxaholic Treasurer still can\u2019t kick his spending addiction\u201d, said Shadow Treasurer, Tim Wilson.<\/p>\n\n\n\n
Mr Wilson\u2019s comments come in the wake of the Reserve Bank\u2019s decision to raise the cash rate by 25 basis points to 4.85 per cent, the fifth interest rate rise this year, the 17th since Labor came to power, and the highest level in 18 years.<\/p>\n\n\n\n
In its statement, the RBA noted \u201cInflation is now forecast to remain elevated through much of 2027 and is not expected to reach the top of the 2\u20133 per cent target range until late 2027, around three quarters later than previously forecast\u201d.<\/p>\n\n\n\n
\u201cThe only sure bet on Melbourne Cup Day was Australian families would be forced to make tough choices because the Treasurer won\u2019t kick his spending addiction\u201d, Mr Wilson said.<\/p>\n\n\n\n
\u201cThe RBA has now warned that because of the Treasurer\u2019s spending addiction rates are going to be high and stay there\u201d.<\/p>\n\n\n\n
\u201cToday\u2019s rise adds around $150 a month to the average new mortgage. That family is now paying about $32,000 a year more in interest than when Labor was elected. That\u2019s $2,700 a month ripped out of the family budget\u201d.<\/p>\n\n\n\n
\u201cIn March last year the Treasurer said we\u2019d turned the inflation corner, but by July last year inflation started rising and so did pressure on interest rates\u201d.<\/p>\n\n\n\n
\u201cWhile most developed countries have had one or two interest rate hikes this year, Australia has now had five because we have a Treasurer that can\u2019t kick his spending and inflation addiction\u201d. <\/p>\n\n\n\n
\u201cAustralia now has higher interest rates and higher underlying inflation than every major advanced economy. This isn\u2019t a global story. It\u2019s a homegrown inflation problem, and its name is the Albanese government\u2019s active inflation agenda\u201d.<\/p>\n\n\n\n
\u201cUnderlying inflation is 3.6 per cent and has been above the Reserve Bank\u2019s target band in 15 of the 18 quarters since Labor was elected. Prices set here in Australia are up 4.5 per cent, and government spending is at its highest share of the economy since 1986-87 outside the pandemic\u201d.<\/p>\n\n\n\n
\u201cThe Reserve Bank, the IMF and business leaders have all warned that government spending is fuelling inflation. The Treasurer keeps pouring debt petrol on the inflation fire, and families and small businesses keep paying the bill at the bank and at the checkout\u201d.<\/p>\n\n\n\n
\u201cReal wages are down 1.5 per cent under Labor. Australians are working harder, paying more at the supermarket, getting less in their trolley and going backwards\u201d.<\/p>\n\n\n\n
\u201cThe Albanese government will never pull in its belt, but it keeps telling Australians to pull in theirs. It stokes inflation, taxes inflation and spends inflation in a vicious cycle that keeps Australians poorer\u201d.<\/p>\n\n\n\n
\u201cThe Coalition has a plan to get inflation down and take pressure off interest rates. We\u2019ve found $31 billion in savings by cutting Labor\u2019s waste, we will put a speed limit on spending so government can\u2019t spend faster than the economy is growing, and we will deliver our Tax Back Guarantee,<\/em> so every Australian worker gets a bigger, permanent tax cut, every year\u201d.<\/p>\n\n\n\n \u201cThe Treasurer has a choice in MYEFO. He can rein in his spending, or he can keep running the economy down the recession runway and leave families and small businesses to pay for it with even higher interest rates\u201d. <\/p>\n\n\n\n \u201cAustralians deserve an economy where hard work gets them ahead, not one where they run faster just to stand still\u201d.<\/p>\n\n\n\n ANNUAL INFLATION, LAST 12 MONTHS<\/strong><\/p>\n\n\n\n