Chalmers slams former RBA governor

Treasurer Jim Chalmers has batted away former RBA governor Philip Lowe’s commentary on government spending.

In an interview with The Australian Financial Review, Lowe criticised the federal government’s willingness to provide handouts, saying it would drive up interest rates (AFR).

Lowe said the government “wants to keep offering people handouts, which adds to demand, which in the normal course of events would be fine. But if the supply is not growing, you can’t do it and if you try to do it, then interest rates have to go up” (The Age).

Chalmers dismissed Lowe’s criticism, saying, “Phil Lowe would have liked to have been reappointed by the government. After he wasn’t reappointed he’s become a fairly persistent critic of the Labor government” (ABC).

Meanwhile, newly-minted shadow treasurer Tim Wilson has called for changes to the way the nation deals with inflation, suggesting a rethink on the RBA’s mandate (The Age). 

Read more: The treasurer and the economist (The Monthly).