Peter Costello demands higher rates and budget austerity

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Last week, former Treasurer Peter Costello urged the federal government to slash spending in order to bring the federal budget back into balance.

Now Costello has hit out at the Reserve Bank of Australia (RBA) for being too slow to raise interest rates, urging it to “get with the curve, rather than behind it”:

Mr Costello described the Reserve Bank’s bond buying program over the past two years as a “bond mine.”

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.