RBA Governor Bullock Refuses to Blame Government for Inflation as Political Fight Erupts
Central bank chief faces tough questions after surprise rate hike
Appearing before a parliamentary committee, Bullock faced sustained questioning about the drivers of inflation and the central bank decision to lift rates despite government efforts to ease cost-of-living pressures.
The RBA decision has ignited a fierce political battle, with the Coalition seizing on the rate hike as evidence of economic mismanagement while Labor defends its fiscal approach.
Bullock maintained the RBA independence, emphasising that monetary policy decisions are based on economic data rather than political considerations. She noted that inflation remains stubbornly above target despite recent progress.
Analysis
Why This Matters
Interest rates directly affect mortgage holders and the broader economy. The political dimension adds complexity ahead of the federal election.
Background
The RBA has navigated a challenging post-pandemic environment, attempting to balance inflation control against employment and growth concerns.
Key Perspectives
RBA: Focused on data-driven policy independent of government
Government: Argues fiscal measures are helping, not hindering
Opposition: Claims government spending is fueling inflation
What to Watch
How rate hike politics plays out in the election campaign.