Government urged to use ‘fiscal firepower’ to tackle inflation
Shadow Finance Minister Jane Hume says the Reserve Bank’s rate decision is made “that much harder” if it is the only one tackling inflation.
Government urged to use ‘fiscal firepower’ to tackle inflation
The RBA is set to make its May cash rate call this afternoon.
“Unless the government uses its fiscal firepower as well as using monetary policy to tackle inflation,” Ms Hume said.
“Well, then inflation stays higher for longer, and interest rates stay higher for longer.
“When interest rates stay higher for longer, Australians will pay the price.”