Chief Westpac Economist Bill Evans says concerns spending outlined in the federal budget will create more inflation and make interest rates move higher are “very much overstated”.
“The two initiatives that will happen this financial year – the fuel excise and the $250 payments – that’s only 0.12 per cent of GDP, it’s not a big number,” he told Sky News Business Editor Ross Greenwood.
“Central banks have always stayed away from fiscal policy in terms of its impact on monetary policy.
“I don’t think that’s going to change the Reserve Bank’s attitude which is one of patience at this stage.”
