Is the 2024 budget inflationary? Warwick McKibbin and other economists say ‘yes’

Former RBA board member among experts who say Albanese government’s third budget is likely to at least delay next interest rate cut

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The Albanese government has “rolled the dice” on the economy and its third budget is likely to at least delay the next interest rate cut by the Reserve Bank, if not provoke another increase, ex-RBA board member Warwick McKibbin and other economists say.

The treasurer, Jim Chalmers, unveiled a second consecutive budget surplus on Tuesday although future years are projected to report sizeable deficits. Westpac estimates the government will pump into the budget an extra $20bn in spending in 2024-25 and 2025-26.

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