Sunrise host Monique Wright has gone head-to-head with federal treasurer Jim Chalmers over the cost of living crisis.
In a live interview, Wright pressed Chalmers on interest rate rises, asking: “Is enough enough?”
WATCH VIDEO ABOVE: Monique Wright presses Jim Chalmers live on Sunrise.
Stream the world’s best reality, entertainment and true crime shows for free on 7Bravo on 7plus >>
The segment follows news that the annual inflation figure eased to 5.6 per cent last month, down 1.2 per cent, mainly thanks to falling petrol prices.
But when asked whether this drop in inflation would see the Reserve Bank pause interest rate rises, Chalmers remained tight-lipped.
“Look what I try and do as the treasurer of the country is not preempt or second guess the decisions that are taken independently by the Reserve Bank,” he said on Sunrise.
“But certainly those numbers yesterday were welcome news when it came to inflation coming off a bit more in our economy.”
Not backing down, Wright pressed Chalmers on his response — asking for his opinion on whether rates should drop.
“Of course, we understand that the Reserve Bank is independent from government,” she fired back.
“But you must have a view – is enough enough? You know, I mean, how many more (interest rate rises) can people withstand?”
In response, Chalmers conceded that Australians had some “difficult months ahead”.
“Well, I certainly understand Monique that when interest rates go up, it makes life harder for people with a mortgage,” he said.
“And each time that interest rates have gone up since before the election and continuing afterwards that has tightened the screws on family budgets.
“We certainly understand that the Reserve Bank have got a job to do, they do that independently without political pressure and I’ve got a job to do as well.
“And I take responsibility for providing this cost of living help without adding to inflation.
“Also investing in the future of the economy and getting the budget in much better nick, so that we can afford to do the kinds of things that we need to do to help people through what we expect will be difficult months ahead.”
‘Difficult message’
Wright then challenged Chalmers on the government’s first surplus in 15 years, saying it was “difficult” news for Australians struggling to buy basic groceries.
“You mentioned there the surplus yesterday you announced the country’s first surplus in 15 years,” she said.
“Is it a difficult message to send out to people when they’re seeing that the government’s got this big surplus? They’re at home now watching and they can’t afford to buy milk and bread?”
Chalmers said the surplus means Australians will soon receive relief from cost of living pressures.
“Oh no, I think it’s important to recognise that the biggest surplus that we are now expecting for this year doesn’t come at the expense of cost of living help for families,” he said.
“In fact, by getting the budget in much better nick by finding savings in the budget and banking, these upward revisions to revenue and showing spending restraint, it actually makes it possible from that much stronger foundation to provide the $15 billion of cost of living relief that we had in the budget.
“And some of that kicks in next week. The cheaper early childhood education, the bill relief for people when it comes to their electricity.
“There’s a whole range of things that we are doing, and we’re able to do that because we’re working so hard to manage the budget in the most responsible and methodical way so that we can build this foundation to help people and invest in the economy.”