Just a week before leaving for the G20 meeting in India, Federal Treasurer Jim Chalmers (pictured) was interviewed on various topics about the Australian economy on the whole, including the rise of interest rates and the Reserve Bank governor appointment.
“The G20 meeting in India next week will be such an important opportunity to confer with my counterparts in the big economies, but also to take the temperature of the global economy at this particularly uncertain time. I'll be traveling to India with Governor Lowe,” Chalmers said. “He and I will work closely together to represent Australia's interests in that forum, and also to make our contribution to the big global conversation about how we safeguard our economies from inflation and some of the other difficult pressures that we are all confronting in one form or another around the world.”
As of July 2023, the interest rate for Australian borrowers is at 4.1%, the highest in the last 11 years. Chalmers said the Albanese Labor government is aware of the burden of interest rates and the current need for cost-of-living relief, noting they already have a budget for the relief.
He said the primary focus of the government is addressing the inflation challenge, managing the budget responsibly, and helping the Australian people. He expressed his interest especially “to make sure that [the banks] are as swift passing on interest rate increases to savers as they have been to borrowers. I think that's one of the most important ways that the banks can show that they're doing the right thing by people.”
Chalmers said he would be making his recommendation for the appointment of the Governor of the Reserve Bank but would not want to “front‑run or pre‑empt the timing or the nature of that conversation”.
“I'm approaching it in a methodical and measured and considered and consultative way, which befits the magnitude of the decision that the government will take about the governor of the Reserve Bank,” he said.
The Opposition has voiced its support for the Albanese Labor government’s budget, with the shadow finance minister expressing her support to their approach on “repairing the budget that we inherited from the Liberal and National parties” as Chalmers described.
“We've taken a responsible approach to managing the budget and why we welcome the Opposition’s support for our approach today,” he said.
He mentioned the trade agreement with the European Union, noting this would benefit many Australian farmers and workers.
“We want a good deal here but it can't be a deal at any cost. We want the right deal for Australia, not just any deal at any cost,” Chalmers said.
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