Treasurer Chalmers Refutes Claims of Tensions with Reserve Bank During Parliament Session

During Question Time on Sept. 9, the federal opposition grilled the government for attributing inflation and economic slowdown to the actions of the Reserve Bank of Australia.

Sussan Ley, Deputy Leader of the Opposition, mentioned reports where Treasurer Jim Chalmers blamed the RBA’s failure to lower interest rates for the sluggish economic growth.

She also referenced remarks made by former Labor National President Wayne Swan last week.

“Why does the Albanese Labor government think it’s acceptable to pressure the independent RBA in such a manner, especially when they are just rectifying Labor’s economic mess?” Ley questioned.

Treasurer Jim Chalmers downplayed the tensions, emphasizing that both parties were committed to curbing inflation.

Chalmers stated that RBA Governor Michele Bullock had clarified that both the government and central bank were in agreement.

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“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.