Politics Now Is a rate rise the government's fault?
18 snips
Feb 3, 2026 A recent cash rate lift and what it means for cost of living and mortgage pain. Political debate over whether government policies helped trigger the rise. Shifting parliament dynamics after the Liberals and Nationals split. Tactics the government might use in the budget to ease pressure. Rising leadership tension and how party polling could shape next moves.
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Rate Rise Is A Course Correction
- The RBA raised the cash rate 25 basis points to 3.85%, marking the first hike since 2023.
- Tom Crowley says this may be a course correction rather than abandonment of the soft landing plan.
Treasurer's 'Not Our Fault' Spin Faces Limits
- Jim Chalmers emphasised the RBA statement doesn't blame government spending, seeking to protect the government's political standing.
- Patricia Karvelas and Tom Crowley note voters still hold governments accountable for rate pain.
Government Spending Still Influences Inflation
- Government actions do affect private-sector spending even if public-sector demand is not the main current driver.
- Tom Crowley argues it's disingenuous for Jim Chalmers to fully distance government policy from inflation dynamics.