RBA Warns Against One-Off Stimulus Payments
The Reserve Bank of Australia Governor warned the Treasurer against implementing large handouts in next week's budget. The Governor stated such measures could lock in higher inflation for a longer period. This follows the RBA's third consecutive interest rate hike yesterday. The recent hike has left the average borrower more than $100 worse off per month. The Reserve Bank of Australia warned that providing one-off payments of up to $300 to wage and salary earners could be inflationary. Such payments might increase upward pressure on interest rates, according to the bank. Treasurer Jim Chalmers stated that next week's budget will be responsible and will not include stimulus. The governor indicated the budget is expected to wind back rather than expand.
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Sources · 7 independent
ABC NewsRadio AU
“The Reserve Bank Governor is warning the Treasurer against big handouts at next week's budget, saying it could lock in higher inflation for longer.”
2GB Sydney
“There's speculation wage and salary earners will get a one-off payment of up to $300, which is not means-tested. The RBA has warned such a move could be inflationary and put more upward pressure on interest rates.”
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