In an interview with the ABC, the treasurer continued to insist that a combination of big tax cuts and payments to households would not stoke the fires of inflation.
“The Reserve Bank will take its decisions independently. I take responsibility for my part in fighting inflation and the budget is making a big effort in that regard,” he said.
“This Budget is about easing the pressure on the cost of living, putting downward pressure on inflation, at the same time as we invest in the future.”
But Chalmers refused to accept that he and his budget decisions could be blamed if the Reserve Bank of Australia raised interest rates later this year, saying it was not “the only measure of a decent budget”.
“I don’t tell the Reserve Bank how to do its job and it doesn’t tell me how to do its job,” he said when asked if the rate hike would be a “shattering verdict” on the budget.
“I am very confident in this budget that we are putting downward pressure on inflation, that we are part of the solution to inflation, not the problem.
“And that’s because of cost containment, responsible economic management and the way we’ve designed our cost of living allowance.”
