Already a subscriber?The Albanese government’s third budget adds more money into the economy this year than it takes out, making it “slightly expansionary”, internal analysis prepared for Reserve Bank governor Michele Bullock says.
“Policy decisions since have reduced the underlying cash balance by around $10 billion in each of the next two financial years.”In the lead-up to the budget on May 14, economists called on Dr Chalmers to deliver a contractionary budget that took money out of the economy, which could allow the RBA to cut the cash rate sooner.
Dr Kennedy declined to do so, while Ms Bullock said it was not a helpful distinction without thinking about the broader economic context.
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