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Pauline Hanson has called on Treasurer Jim Chalmers to resign after the Reserve Bank's latest interest rate hike, accusing the government of failing to control inflation.
In a unanimous decision by the board, the cash rate was lifted by 25 basis points to 4.6 per cent on Tuesday, its highest level since 2011.
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rate → see → 2011
In a video following the decision, the One Nation leader claimed the rise exposed what she called failed promises by the Albanese Government and would leave households facing even greater financial pressures.
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she → follow → pressures
'Labor has wrecked our economy and it needs to be fixed,' she said.
'
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she → wreck → economy
Jim Chalmers said rates were coming down, but today Australians have been hit with another interest rate rise.'
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Australians → say → rise
Hanson accused the Treasurer of refusing to take responsibility for rising living costs and increased borrowing pressures.
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Hanson → accuse → costs
And yet again, Jim Chalmers blames everyone but himself,' she said.
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she → blame → himself
On Wednesday morning, the senator doubled down on her criticism, saying: 'Treasurer Jim Chalmers has failed Australians.
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Chalmers → double → Australians
He should resign.
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He → resign → ?
Pauline Hanson (pictured) called for Jim Chalmers to resign after the RBA hiked rates
Hanson also called for urgent action to help struggling households and renewed One Nation's push for its proposed 'super pay boost' policy.
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Hanson → picture → policy
The plan, she said, would allow Australians to access up to 25 per cent of their future compulsory superannuation contributions as take-home pay for up to three years, to help with mortgage repayments or rent.
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Australians → say → repayments
'It won't fix Labor's mess, but it could give a working family about $82 more a week after tax,' she said.
uncertain
she → fix → tax
Hanson said the Treasurer should immediately adopt the policy before considering his own future.
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Treasurer → say → future
'Labor is running this country into the ground,' she said.
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she → run → ground
'The best thing Jim Chalmers could do today is implement One Nation's super pay boost, then he should resign.
uncertain
he → do → boost
Her attack came after Chalmers defended the government's economic record in response to the Reserve Bank's decision.
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Chalmers → come → decision
Speaking on Tuesday, the Treasurer said the government had been battling inflation through disciplined budget management and reduced public spending growth.
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government → speak → management
Jim Chalmers (pictured) said he took 'responsibility' for his part of the fight against inflation
'
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he → picture → inflation
We take responsibility for our part of the fight against inflation,' Chalmers said.
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Chalmers → take → inflation
'That's why we've been managing the budget responsibly.
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we → manage → budget
It's why we've been delivering a couple of surpluses and then much smaller deficits.
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we → deliver → surpluses
It's why we've made sure that public demand in our economy has slowed rather than gathered pace.'
Chalmers said the private sector was now the dominant source of demand in the economy.
'
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sector → make → economy
If you look at public demand in our economy versus private demand, over the last year or so, for every five dollars of demand in our economy, four of those have been private demand and one has been public demand,' he said.
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he → look → those
'And we saw public demand growth halve compared to the year before.'
The Treasurer also pointed to international factors, particularly conflict in the Middle East, as a key contributor to inflation.
'As I said, we do have serious challenges in our economy,' Chalmers said.
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Chalmers → see → economy
'Our inflation challenge is being turbocharged by a war on the other side of the world.
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challenge → turbocharge → world
Australians are paying a very hefty price for that war in the Middle East.
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Australians → pay → East
And today that price became a bit steeper with this decision from the independent Reserve Bank.'
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price → become → Bank
Reserve Bank Governor Michelle Bullock (pictured) said public and private sector spending was contributing to inflation
Chalmers' comments came as Reserve Bank Governor Michelle Bullock confirmed both government and private sector spending were contributing to inflation.
Asked by the Daily Mail whether public sector spending was adding to aggregate demand and making it more difficult to bring down inflation
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it → picture → inflation
, Bullock said demand was driven by both public and private activity.
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demand → say → activity
'I've made this point a number of times before: aggregate demand is made up of both public demand and private demand,' Bullock said.
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Bullock → make → demand
'They both contribute to aggregate demand.'
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They → contribute → demand
While Bullock declined to blame any single source for inflation, she said demand was still exceeding the economy's ability to supply goods and services.
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demand → decline → goods
'The fact is that we're observing demand growing a bit too quickly relative to supply,' she said.
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she → observe → supply
'It's slowed now, but it's still running ahead of supply, and that's what we're trying to address.'
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we → slow → what
- READ MORE: Reserve Bank boss's answer to Daily Mail question will send shudders through Albo's ranks: PETER VAN ONSELEN
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answer → read → ranks
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