Australia’s economy has slowed down but it remains resilient which has led to calls for the government and RBA to introduce a petrol excise cut, says Judo Bank economic advisor Warren Hogan.
“Petrol prices … were up a lot in the quarter – up seven per cent but that’s not what’s driving the RBA’s thinking,” Mr Hogan told Sky News Australia.
“To do a petrol excise cut now would be very popular, it would be reasonably expensive depending on what they did – five or six billion.
“But of course that’s five or six billion you put right into the economy right when the RBA’s actually trying to slow the economy.
“So it’s counterproductive, it will help with measured inflation but it will just raise the chance that we have to have higher rates next year.”
Extracted in full from: ‘Would be very popular’: Calls for a petrol excise cut despite its ‘counterproductive’ risk | Sky News Australia