Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

The Reserve Bank sets interest rates, and one of the things it sets interest rates on the basis of is the state of overall inflationary pressures in the economy. One of the things that the Reserve Bank is entirely mindful of is the extent to which those inflationary pressures have endured over time. If you look carefully at the minutes of the most recent Reserve Bank meeting, it has concluded that these inflationary pressures have continued for some time. Furthermore, it has noted, as I believe has the IMF recently, that there has also been a moderating influence brought to bear on fiscal policy through the right settings which have been adopted by the government through its management of the budget.

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