Penny Wong (SA, Australian Labor Party, Shadow Minister for Corporate Governance and Responsibility) Share this | Hansard source

My question is to Senator Minchin, the Minister representing the Treasurer. I again refer to the recent inflation figures, which rose to 3.9 per cent for the year ending September. Is the minister aware that the Prime Minister, in response to this increase, said:

What you have to consider is that if you don’t have an interest rate rise ... there will be a further boost in inflation ...

Can the minister explain why the Prime Minister has given the green light to the Reserve Bank to increase interest rates? Haven’t there already been seven increases since May 2002, including three since October 2004, when Mr Howard said that interest rates would not increase under his government?