The Reserve Bank governor, Michele Bullock, has downplayed the role of government spending in keeping inflation elevated, citing consumer spending and China’s slowdown as bigger influences on Australia’s economic trajectory.
“I want to be clear that public demand is not the main game,” Bullock told the House of Representatives economics committee on Friday. Instead, she pointed to consumption, residential construction and trade as “the big swing things that are going to impact us over the next year or so”.
