Face of Nation : Finance Minister Mathias Cormann has rejected suggestions the Morrison government is at odds with the Reserve Bank, saying monetary and fiscal policy are “heading in the same direction”.Last week, the quarterly national accounts showed economic growth slowed to 1.4 per cent in the year to June, raising expectations that the central bank will be forced to cut the official cash rate again, which already stands at a record low one per cent.
Labor is concerned that a split has emerged between the government and central bank over how to best handle Australia’s slowest economic growth since the global financial crisis a decade ago.
Senator Cormann said the government has significantly boosted its infrastructure investment pipeline. “The Reserve Bank governor has said on repeated occasions in the last month or two, he expects growth to strengthen into the future, including and in particular, because of the continuing high investment in infrastructure,” the minister said.
The government is likely to be questioned on its handling of the economy when parliament sits this week following the long winter break. Among its agenda items, the government will have another go at passing legislation to trial drug testing of welfare recipients.
Labor Leader Anthony Albanese described the issue as a distraction by a government that doesn’t have an agenda to deal with the economy. He said economic growth has reduced, consumer demand is weak, there is wage stagflation and living standards are not keeping up with the cost of living.
