Why the government subsidies are making it harder for the RBA to lower inflation | The Business

Reserve Bank officials have emphasised government spending - including cost-of-living relief subsidies - are not helping it to bring inflation down.
But some economists believe the RBA made a mistake by leaving the cash rate at 4.35%, and should have hiked instead.
Steven Hamilton, Assistant Professor of Economics at George Washington University, says the RBA could be forced to raise rates if inflation becomes embedded in the economy. He says high interest rates and energy subsidies are working against each other.
In an interview with Kirtsen Aiken, he explains how government spending - including relief measures - work to slow disinflation.
#ABCBusiness

Subscribe: http://ab.co/1svxLVE

ABC News provides around the clock coverage of news events as they break in Australia and abroad. It's news when you want it, from Australia's most trusted news organisation.

For more from ABC News, click here: https://ab.co/2kxYCZY
Watch more ABC News content ad-free on ABC iview: https://ab.co/2OB7Mk1

Go deeper on our ABC News In-depth channel: https://ab.co/2lNeBn2
Like ABC News on Facebook:   / abcnews.au  
Follow ABC News on Instagram:   / abcnews_au  
Follow ABC News on X (Twitter):   / abcnews  

Note: In most cases, our captions are auto-generated.

#ABCNews #ABCNewsAustralia