Reserve Bank chief economist Sarah Hunter has acknowledged that state and federal government spending is contributing to capacity pressures across the economy, days out from inflation data that could all but lock in a fifth interest rate rise this year.
In a pre-recorded television interview with 60 Minutes , aired on Sunday night, Hunter said government spending was contributing to domestic economic demand, which, alongside the oil shock, had pushed up costs across the economy. 60 Minutes is broadcast by Nine, the publisher of The Australian Financial Review.
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