Final countdown
Jim Chalmers didn’t quite declare “mission accomplished” on inflation this week. But if the Reserve Bank cuts rates in February, he’d be justified in making that claim ahead of an election.
It took only a few minutes for the treasurer’s post-inflation data press conference this week to shift to the upcoming election. A possible rate cut in a matter of weeks is widely considered a major factor behind the timing.
Jim Chalmers shrugged off the notion, saying he was still working towards a federal budget on 25 March and the decision is ultimately in the hands of the prime minister.
“We are encouraged by the numbers that we have seen … but we take no outcome on interest rates for granted,” Chalmers said, when asked if the government had done enough to ensure an environment for cuts.
As we wrote earlier this week, there's been speculation about two factors that underpin the chances for an election to be called for early-April. Firstly, a near-term rate cut, which this week became much more likely. And secondly, an assessment of how another budget is likely to be interpreted by the public.
