Speaking at the first National Press Club held in Queensland, Treasurer David Janetzki directly blamed the federal government for the "domestic capacity pressures" the RBA governor cited when justifying the rate hike. "Jim Chalmers and the federal government must take responsibility," Mr Janetzki said. "When the governor said 'domestic capacity pressures', she's talking about the federal government."
The Treasurer rebuffed suggestions that the LNP government's spending priorities, including infrastructure projects for the 2032 Olympic Games and a cost-of-living support package featuring 50-cent public transport fares and a $100 Back to School Boost, were driving inflation. He maintained the state budget was on track for a surplus by 2030. "We've been fiscally disciplined and we have improved the position of the budget, and that's undeniable," he said.
Independent economist Saul Eslake offered a contrasting view, arguing state governments were equally responsible for upward pressure on the Consumer Price Index. "In general, the states are as guilty of that as the feds," Mr Eslake said. He noted that Queensland government spending, including capital expenditure, rose by 7.3 per cent in 2025-26 following an 8.5 per cent increase the previous year.
Mr Eslake criticised the effectiveness of state stimulus measures, saying the spending "isn't well targeted" and fuels demand. The disagreement underscores a growing political debate over who bears responsibility for persistent inflation and higher borrowing costs as the RBA continues its tightening cycle.