Koch Blasts RBA Over Rate Hike Fears

Economist David Koch has written an open letter to RBA Governor Michele Bullock, urging policymakers to consider government spending in their interest rate decisions.

The Reserve Bank is set to meet on September 29 and markets are predicting another rate rise after Bullock warned of building inflation pressures.

Koch argues that households have already tightened their belts in response to years of high inflation and elevated interest rates, but government spending remains a major driver of prices.

He points to global oil prices as an example, saying motorists are already feeling the impact at the pump and warning that another rate rise will only add to their burden.