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‘Foot on brake, foot on gas’: RBA clashes with federal government's spending spree
May 5, 2026
Posted 2 hours ago by
Microbusiness Chief Economist Leith Van Onselen slams conflicting policy, saying government spending is fuelling inflation while rates rise. “We’ve got a burnout economy here where the RAB’s got its foot planted on the brake, raising interest rates desperately trying to slow the economy and trying to slow inflation,” Mr Van Olsen told Sky News host Steve Price.
“While the federal government got its foot on the accelerator, spending big, handing out money. “The last thing the RBA needs is the federal government to be handing out money for taxpayers to spend because doing so is just going to drive up demand and also inflation. “It’s the wrong approach.”
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