The treasurer insists his budget will not fan the flames of inflation and trigger more interest rate rises, but leading economic experts are not convinced.
Federal budget sparks fresh concerns of more rate hikes
Treasurer Jim Chalmers has rejected concerns his cost of living budget will fuel inflation and trigger more interest rate rises.
His second budget juggled several priorities, namely keeping a lid on inflation while offering some cost of living support to those most in need.
Independent economist Chris Richardson said the budget lacked the hard decisions needed to let the central bank keep interest rates on hold, and would pump money into the economy.
“I had thought after the surprise rate rise from the Reserve Bank last month that they were done and dusted. I’m less clear now that that’s the case,” he said.