Government overspending blamed for coming interest rate hike

Federal government has been urged to stop decades-high levels of spending that critics claim is fuelling rampant inflation and making another interest rate hike next week a near certainty. The RBA is widely expected to increase the cash rate next week for the fourth time this year in an attempt to push down spending and curb entrenched inflation. Economic director of Compare the Market, David Koch has called on the RBA governor to recognise that excessive government spending is the real reason inflation keeps rising. MORE: Aus mortgage crisis just got worse Compare the Market economic director David Koch said excessive government spending is driving up inflation. Picture: Jono Searle MORE: Inflation bombshell shows rate hikes backfiring “I’m writing to you publicly because millions of Australians are crying out right now … and because on 29 September a great many of them are likely to be handed a bill they did little to run up,” Mr Koch said. “Before the board votes, I’d ask it to look closely at who generated that worryingly high level of growth. “It wasn’t households,” he said. Figures from Compare the Market show that an average mortgage holder’s repayments have gone up by $4,21...