Albanese calls rate hikes a ‘blunt instrument’ amid seventeenth predicted rise
The Prime Minister has taken aim at the Reserve Bank, claiming rate hikes are a “blunt instrument” hurting people with mortgages.
Anthony Albanese’s comments come as that pain is only set to continue, with the RBA weighing up a fifth increase this year in a bid to kerb mounting inflation.
Prime Minister Anthony Albanese during a press conference at Parliament House in Canberra. Alex Ellinghausen
It would put rates at 2008 levels, as the nation hovers on brink of a recession.
He made the comment in an interview with the Sydney Morning Herald.
“Interest rates are a blunt instrument,” Albanese warned. “They have an impact on people who have mortgages.”
Albanese linked the current economic and social disruption to the hardship of wartime.
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But he told the paper public spending was not to blame and said Labor would not cut pensions, education, or health.
However, Liberal MP Andrew Wallace accused the government of having a “spending problem”.
“The RBA has got one tool at its disposal to slow the economy and that’s interest rates,” he told Weekend Today.
“This will be the 17th interest rate rise under this government.
It’ll be the fifth one this year, if it pulls the trigger on this Melbourne Cup Day.
“But it’s because this government has a spending problem.
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“Anthony Albanese having a crack at the RBA is like an arsonist complaining about getting his fingers burnt.
“You know this government continues to spend like a drunken sailor and yet you know is is crying crocodile tears because of what the RBA looks like.
“It’s going to have to do 17 interest rate rises.
Reserve Bank Governor Michele Bullock has reiterated her bank’s focus on bringing inflation down. Alex Ellinghausen
“That’ll be the equivalent of around about $31,000 or $32,000 a year extra after tax that people are having to pay for their mortgages compared to what they were paying under the Coalition.”
Wallace said the Liberals announced over $31 billion worth of cuts.
“Just on Monday. Angus Taylor stood up, announced that we’d be ending corporate welfare,” he said.
“We’d be ending this billions of dollars going to green energy companies.
“You know, if people want to drive an electric car, knock your socks off. But just don’t expect the Australian taxpayer to underwrite and pay for it.
Albanese is flying out to the Caribbean this weekend to meet other heads of Commonwealth countries, including the King.
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