Last week, following the Reserve Bank of Australia’s (RBA) decision to lift the official cash rate (OCR) by 0.25%, Treasurer Jim Chalmers claimed that excessive private sector demand was behind Australia’s high inflation.
In a media release directly following the RBA’s decision, Treasurer Chalmers said “the Board’s statement today does not mention government spending. It makes it very clear the pressure on inflation is coming from private demand”.
Treasurer Chalmers doubled down on these claims in subsequent media appearances, claiming that government spending was “not a factor in the decision that they (RBA) took”.
