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State spending splurge could delay interest rate cuts, warns Westpac

John Kehoe
John KehoeEconomics editor

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Federal and state governments are planning to inject more than $50 billion of stimulus into the economy in the year ahead, adding to inflation pressures and the risk of interest rate cuts being delayed, Westpac has warned.

The assessment comes after big-spending Labor budgets prompted a rare call out from the Reserve Bank of Australia board, which said this week that recent government budgets would increase demand in the economy.

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    Original URL: https://www.afr.com/policy/economy/state-spending-splurge-could-delay-interest-rate-cuts-warns-westpac-20240621-p5jno1