Labor must show budget ‘restraint’ to curb further interest rate rises

Judo Bank Economic Advisor Warren Hogan analyses the risks of “damaging” the Australian economy with further rate rises unmitigated by the Australian federal government.

“The strategy from a tough cop on the beat would be to signal they are going to raise rates back to where they were by the time of the budget season in May,” Mr Hogan told Sky News host Peta Credlin.

“If the state and federal government budgets show some restraint, maybe we will get away with a peak cash rate of 4.35 per cent, but if they do not, we may have to take the cash rate to five per cent or worse.”