Bullock defends RBA as big four banks all pass on rate rise; Historic Australian defence properties to be sold off

Independent MP Zali Steggall says the government must take responsibility for high government spending as a factor driving inflation, following the Reserve Bank’s decision to raise rates yesterday.

“We need to look at the factors that are driving inflation. Of course, the RBA have identified private sector spending being too high, but we have to be clear, government spending has now risen to 28 per cent of GDP,” she told Nine’s Today.

“What do we spend on, what is helpful and supporting Australian people? And I think that’s where we really have to ask questions of the government. Where does it need to readdress its spending priorities?”

Appearing alongside Steggall was Nationals senator Matt Canavan, who said, “It’s a bad day for Australian home owners who are facing a big, big increase in their mortgage payments thanks to this mismanagement of our economy.”

Following its first meeting of the year yesterday, the RBA lifted the cash rate by a quarter percentage point to 3.85 per cent, adding $100 a month to the repayments on a $600,000 mortgage.

It comes after a surprisingly high inflation read of 3.8 per cent for the 12 months to December and unemployment falling to 4.1 per cent.