Treasurer Jim Chalmers will warn of slower economic growth and higher unemployment as officials rework numbers ahead of the Albanese government’s mid-year update, and traders price in a two-in-three chance the Reserve Bank of Australia will lift rates for a fifth time this year.
Chalmers’ comments will come after the RBA wrote to a parliamentary committee, acknowledging that lower government spending would ultimately reduce inflation, helping hold off interest rate rises.
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