Treasurer Jim Chalmers has defied the Reserve Bank of Australia’s inflation projections ahead of his highly-anticipated budget announcement on Tuesday.
Treasurer Jim Chalmers has indicated that spending in this year's Federal Budget will stand in contrast to the Reserve Bank's inflation projections, telling Sky News' Andrew Clennell that he takes responsibility for the fiscal policies that will be announced on Tuesday.
However, Dr Chalmers has bet on a scenario where inflation will return to the target band of between two to three per cent by the end of 2024, about a year before the RBA’s prediction. Independent economist Saul Eslake has said"it is possible" the government could bring inflation down to the target range by Christmas. Picture: Sky News Australia
He said the RBA’s forecast has not accounted for the government’s spending plans, which will play an important role in shaping Australia’s economic conditions. Federal Treasurer Jim Chalmers has said he takes responsibility for the measures he hopes will tackle the nation's stubbornly high inflation. Picture: NCA NewsWire / Martin OllmanShadow finance minister Jane Hume has called out the “vastly different forecasts”, saying the Treasurer will need to explain why he expects the rapid fall in inflation.
Jane Hume has said the Treasurer will have to explain the"vastly different forecasts". Picture: Sky News AustraliaIn response to criticism, Assistant Defence Minister Matt Thistlethwaite said the budget surpluses achieved by Labor have allowed them to use fiscal policy to control inflation.
Federal Budget Jane Hume David Littleproud Inflation Saul Eslake Jim Chalmers Matt Thistlethwaite Treasury Federal Treasury
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