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RBA interest rates: RBA leaves the cash rate on hold at 4.35pc as it ...

RBA interest rates RBA leaves the cash rate on hold at 435pc as it
Michele Bullock warned another interest rate rise was still a possibility, as the RBA conceded it had been surprised by the large rise in government spending.

RBA governor Michele Bullock has urged federal and state governments not to stoke inflation with big-spending election promises and warned another interest rate rise was still a possibility as the central bank conceded it had underestimated public spending on services such as the National Disability Insurance Scheme.

A string of big spending announcements including in the lead-up to the Queensland election last month have pushed government spending to a record share of the economy. At the same time, Australia has recorded the highest underlying inflation rate of any advanced economy, according to RBA analysis released in its quarterly forecast update on Tuesday.

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