‘Gloves off’: RBA fires warning shot over government spending

Former Treasury assistant secretary David Pearl comments on the RBA’s decision to increase the cash rate target by 25 basis points to 4.35 per cent.

“Michele Bullock has been very reluctant to see anything on policy and government spending, or else she’ll get an angry phone call from Jim Chalmers,” Mr Pearl told Sky News host Peta Credlin.

“But today, by her standard, she took the gloves off, and she made it abundantly clear that cash handouts at this time are not helpful for the RBA.

“I thought it was a big turning point.”