RBA interest rates: Reserve Bank warns on budget spending surge ...

The Reserve Bank of Australia has warned big-spending government budgets risked stoking demand at a time when the economy was still too strong, as governor Michele Bullock conceded it would be a “slow grind” back to the inflation target.

In a hastily arranged press conference, Treasurer Jim Chalmers rejected the RBA board’s warning, saying budgets were just one factor determining the outlook for interest rates.

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