CANBERRA, Sept 3 (Bernama-Xinhua) -- Australia's Treasurer Jim Chalmers on Tuesday defended his statement that high interest rates are negatively impacting the country's economic growth, saying they are "smashing" the economy.
Chalmers clarified that his comments were not intended as criticism of the Reserve Bank of Australia (RBA), but rather as an observation of the factors contributing to the current economic slowdown, reported Xinhua.
It came ahead of the release of the latest gross domestic product data from the Australian Bureau of Statistics on Wednesday, which economists predict will show slow economic growth for the 2023-24 financial year.
"I think it would be strange, frankly, if the treasurer of Australia is anticipating some numbers this week that will be soft and subdued if I couldn't explain to people why that is the case," Chalmers told Seven Network television on Tuesday when asked about if he was criticising the RBA over interest rates.
"I think a lot of people understand the pressure that comes from higher interest rates and that is what I was acknowledging."
In a statement released on Sunday night, Chalmers said the government would not be surprised if economic growth is slow and subdued due to global uncertainty and the "impact of rate rises which are smashing the economy."
The RBA has lifted interest rates 13 times since May 2022 from 0.1 per cent to 4.35 per cent in a bid to slow spending and lower inflation.
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