RBA governor Michele Bullock says she didn't 'caution' the government about its spending

Reserve Bank governor Michele Bullock has rejected suggestions she cautioned the federal government about its spending behaviour, amid media reporting that she had warned the treasurer to exercise restraint in the lead up to next year's election. The government's attitude 'is the right one' "What I've been observing is that the private sector in Australia at the moment is very weak, and the public sector demand has been filling that gap, so what we have is an economy which is not growing very quickly and the private sector's very weak and the public sector's providing some support," Ms Bullock said on Thursday. Ms Bullock reminded Senator Smith that "fiscal policy" — which refers to a government's spending and taxing decisions — had to fulfil many roles in society. Trump's policies could lead to higher global interest rates, damage from tariffs Christopher Kent, RBA assistant governor, appeared alongside Ms Bullock in the Senate hearing on Thursday morning. He was asked to explain how markets were reacting to the news of Donald Trump's victory in the US presidential election overnight, and what his election could mean for inflation and interest rates globally.