Lowe Slams Labor Government Over Inflation-Fuelling Spending Habits

Former Reserve Bank of Australia governor Philip Lowe has expressed his concerns about the current Labor government's spending habits, warning that it is fueling inflation and keeping interest rates high. According to Lowe, the government needs to rein in its spending to ease pressure on inflation and interest rates.

Lowe pointed out that the federal budget deficit has blown out to $22.3 billion on an underlying basis and $36.1 billion on a headline basis. He argued that at a time when Australia is at full employment and commodity prices are high, the government should be running sizeable surpluses instead of deficits.

The Reserve Bank's relationship with the current government has become more strained than under the previous Coalition government, Lowe said. He also emphasized the need for tax reform to boost investment, productivity, and economic growth.