With markets pricing in a more than 80 per cent chance that the Reserve Bank of Australia will lift the cash rate again on Melbourne Cup Day, the pressure on the Albanese government’s economic management record is intensifying.
Labor’s challenge now is to make belated real savings in the mid-year budget update. That is essential both to cut the excessive government spending that has added to stubborn inflation and to find fiscal headroom to cover the higher cost of servicing public debt in a higher-interest-rate world.
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