Chalmers acknowledged that even with 22.1 cents per liter of relief, “gasoline prices are back on track,” but said that every labor dollar allocated to the next budget should “tick a few different boxes.” given the limitations of spending.
Meanwhile, economists predict that the Reserve Bank will again raise the cash rate on Tuesday by 0.5% more, to 1.35%. Official interest rates were 0.1% in April.
AMP chief economist Shane Oliver said the increase was expected given the RBA’s desire to return inflation to 2-3%.
“With interest rates still too low given the tight labor market, inflation is on track at 7% year-on-year and the RBA should keep inflation expectations low, especially after the minimum wage of about 5% and the minimum wage awarded. increases: we expect another move of 0.5 percent, “he said.
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