Australian PM Albanese says tax cuts have no implications for RBA inflation forecasts

To the extent that tax cuts put more money in consumer pockets they will increase demand and add to inflationary pressure.

JP Morgan made a similar point:

  • fiscal policy should be supportive, tax cuts coming which will “therefore be a tailwind for growth (and inflation), allowing the economy to sustain higher interest rates than previously”

Australian PM Albanese

This article was written by Eamonn Sheridan at Source