Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

As Senator Smith knows with that question, the government does not control interest rates. Rises are decisions made by the independent Reserve Bank. The recent review of the Reserve Bank actually recommended strengthening that independence. We are working with the opposition on that legislation. To suggest that the government can control that is silly. It's not the way the system works.

What I would say is the government have a role to ensure that the decisions we make do not add to inflation, and that is the focus of our budget. That has been confirmed by the Governor of the Reserve Bank. It's been confirmed by the secretary of the treasury department. In fact, in our energy measures, which those opposite voted against, there is downward pressure on inflation. So that is the focus of this government. It is a focus that we will continue. That is our focus for the Australian people. (Time expired)