Australia

Cash rate rise ‘a sign of economic difficulties to come’

Sky News host Peta Credlin says the Albanese government is lucky inflationary issues are hitting the economy at the beginning of its term – in the “honeymoon period”.

“Labor's challenge will be to avoid making a bad situation worse – but that will be hard, given the government has promised even higher taxpayer spending on aged care, on childcare and on Medicare,” she said.

“And the government has also promised to shield workers from the pain of inflation – even though an inflation wage rise could readily give way to an inflationary spiral.”

Ms Credlin said Australia’s rising inflation saw the Reserve Bank of Australia raise interest rates by 50 basis points this afternoon, “a sign of economic difficulties to come”.

“The Reserve Bank’s aim by raising the cash rate is to reduce liquidity in the economy, to restrain spending and therefore put downward pressure on inflation," she said.

“But this is far from the only pressure point on everyone's cost of living.”

She said grocery prices have increased by 12 per cent over the past year, with fuel up 30 per cent in the last six months and power prices set to rise by almost 20 per cent in Queensland and New South Wales.

“It’s the current inflation hit to all things we have to buy day-to-day that’s going to make us all poorer in the medium-term," she said.

Sky News host Peta Credlin says the Albanese government is lucky inflationary issues are hitting the economy at the beginning of its term – in the “honeymoon period”.

“Labor’s challenge will be to avoid making a bad situation worse – but that will be hard, given the government has promised even higher taxpayer spending on aged care, on childcare and on Medicare,” she said.

“And the government has also promised to shield workers from the pain of inflation – even though an inflation wage rise could readily give way to an inflationary spiral.”

Ms Credlin said Australia’s rising inflation saw the Reserve Bank of Australia raise interest rates by 50 basis points this afternoon, “a sign of economic difficulties to come”.

“The Reserve Bank’s aim by raising the cash rate is to reduce liquidity in the economy, to restrain spending and therefore put downward pressure on inflation,” she said.

“But this is far from the only pressure point on everyone’s cost of living.”

She said grocery prices have increased by 12 per cent over the past year, with fuel up 30 per cent in the last six months and power prices set to rise by almost 20 per cent in Queensland and New South Wales.

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“It’s the current inflation hit to all things we have to buy day-to-day that’s going to make us all poorer in the medium-term,” she said.Sky News host Peta Credlin says the Albanese government is lucky inflationary issues are hitting the economy at the beginning of its term – in the “honeymoon period”.

“Labor’s challenge will be to avoid making a bad situation worse – but that will be hard, given the government has promised even higher taxpayer spending on aged care, on childcare and on Medicare,” she said.

“And the government has also promised to shield workers from the pain of inflation – even though an inflation wage rise could readily give way to an inflationary spiral.”

Ms Credlin said Australia’s rising inflation saw the Reserve Bank of Australia raise interest rates by 50 basis points this afternoon, “a sign of economic difficulties to come”.

“The Reserve Bank’s aim by raising the cash rate is to reduce liquidity in the economy, to restrain spending and therefore put downward pressure on inflation,” she said.

“But this is far from the only pressure point on everyone’s cost of living.”

She said grocery prices have increased by 12 per cent over the past year, with fuel up 30 per cent in the last six months and power prices set to rise by almost 20 per cent in Queensland and New South Wales.

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“It’s the current inflation hit to all things we have to buy day-to-day that’s going to make us all poorer in the medium-term,” she said.

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