Australian treasurer defends claim high interest rates slow economic growth

CANBERRA, Sept. 3 (Xinhua) — Australia’s Treasurer Jim Chalmers on Tuesday defended his claim that high interest rates are “smashing” the country’s economy.
Chalmers dismissed suggestions that he was criticizing the Reserve Bank of Australia (RBA), the nation’s central bank, when he identified high interest rates as a factor in slow economic growth.
It came ahead of the release of the latest gross domestic product data from the Australian Bureau of Statistics on Wednesday, which economists predict will show slow economic growth for the 2023-24 financial year.
“I think it would be strange, frankly, if the treasurer of Australia is anticipating some numbers this week that will be soft and subdued, if I couldn’t explain to people why that is the case,” Chalmers told Seven Network television on Tuesday when asked about if he was criticizing the RBA over interest rates.
“I think a lot of people understand the pressure that comes from higher interest rates and that is what I was acknowledging.”
In a statement released on Sunday night, Chalmers said the government would not be surprised if economic growth is slow and subdued due to global uncertainty and the “impact of rate rises which are smashing the economy.”
The RBA has lifted interest rates 13 times since May 2022 from 0.1 percent to 4.35 percent in a bid to slow spending and lower inflation. ■