Treasurer Chalmers Denies Tensions with Reserve Bank in Parliament

Question Time on Sept. 9 saw the federal opposition press the government for blaming inflation and the sluggish economy on the actions of the Reserve Bank of Australia.
Deputy Leader of the Opposition Sussan Ley cited reports in which Treasurer Jim Chalmers pointed to the RBA’s failure to cut interest rates as a factor in sluggish economic growth.
She also referenced former Labor National President Wayne Swan for striking comments last week.
“Why does the Albanese Labor government think it’s acceptable to bully the independent RBA in this way, when all they’re doing is cleaning up Labor’s economic mess?” Ley questioned.
Treasurer Jim Chalmers downplayed the friction, stressing that both sides were committed to reducing inflation.
Chalmers said RBA Governor Michele Bullock had clarified that both the government and central bank were aligned.
“The governor made it clear last week in her public comments that she doesn’t agree with the assessment put forward by the Deputy Leader,” Chalmers said.
“It’s ironic, when you consider the mess we inherited—turning those deficits into surpluses, getting real wages moving again, and reducing inflation to half of its peak from the year we were elected,” Chalmers said about the previous Coalition government.
Chalmers further stated that he would take full responsibility for tackling inflation.
“I take responsibility for fighting inflation and for delivering budget surpluses, while those opposite only ever delivered deficits.”
Last week Prime Minister Anthony Albanese also defended the RBA after former Labor Treasurer Wayne Swan said its monetary policy was like “punching itself in the face.”
Swan accused the RBA of “putting economic dogma over rational decision making,” after Governor Bullock repeated that she did not expect to cut interest rates soon.