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The Guardian - AU
The Guardian - AU
National
Patrick Commins

Did Anthony Albanese just cement a third interest rate hike in May by cutting the fuel excise?

Australian prime minister Anthony Albanese
Prime minister Anthony Albanese has cut the fuel excise for three months, saving 26c a litre, but it will primarily benefit wealthier households. Photograph: Lukas Coch/AAP

Economists will say that what millions of motorists gain in cheaper fuel through the prime minister’s three-month fuel excise cut, they will lose in more expensive mortgages.

It may be good politics, but injecting $1.5bn via petrol subsidies into an economy that is already struggling with a resurgent inflationary problem is not going to make the Reserve Bank of Australia’s job any easier.

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