Chalmers Defends Inflation Policy as RBA Prepares to Hike Cash Rate

Australia's Finance Minister Jim Chalmers defended the government's inflation policy ahead of an expected increase in the cash rate, attributing global pressures and high fuel prices as significant drivers of price growth.

The Reserve Bank of Australia is set to make a decision on the cash rate on Tuesday, with financial markets and economists almost unanimous in expecting another increase. The current rate of 4.6% is expected to reach this level for the first time since October-November 2011.

Chalmers also highlighted that the budget deficit for the past financial year was $6 billion lower than the May forecast of $28.3 billion, indicating that the government has restrained spending growth.