Economy
Background
Recent monthly inflation data indicated rates remained above the Reserve Bank's target band, with RBA officials suggesting fiscal deficits could push neutral interest rates higher.
Question
The senator asked whether the government agreed with Reserve Bank assessments that growing fiscal deficits were contributing to persistent inflation and preventing interest rate reductions.
Includes 2 supplementary questions.
Answer from Katy Gallagher
The minister stated the government was committed to fiscal discipline, having halved the deficit and reduced debt interest costs. She argued that responsible budget management supported the Reserve Bank's efforts to lower inflation while providing cost-of-living assistance. She rejected the opposition's approach of significant cuts and tax increases, asserting that the government's strategy of finding savings and reprioritising spending was effective.
Summary in reported speech - not a transcript. AI-generated, so check the source.