Australian Treasurer on Defensive as RBA Rate Hike Spurs Blame

Australian Treasurer Jim Chalmers faced criticism after his opposition counterpart urged him to apologize to economist Diana Mousina for “misrepresenting” her remarks about the government’s role in reviving inflation and, in turn, the first interest-rate hike of 2026.

Shadow Treasurer Ted O’Brien said Chalmers repeatedly avoided responsibility for higher borrowing costs after the Reserve Bank ended a brief and shallow easing cycle, lifting the cash rate to 3.85% this week. O’Brien alleged in comments to parliament that Chalmers used a quote from Mousina to imply that government spending did not contribute to a rise in inflation.