Carrington Clarke

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After another rate hike was handed down by the Reserve Bank yesterday, Governor Michelle Bullock was quizzed on whether government spending could make the RBA's task of bringing down inflation more difficult.

While she was careful to avoid direct criticism of government policy, she also made clear that higher demand wouldn't be welcome.

So how might this impact the Treasurer's thinking ahead of next week's federal budget?

Welcome to ABC Business Daily.

I'm Carrington Clarke.

Ian, always a pleasure.

Now, we had the Reserve Bank making its decision yesterday on interest rates as expected.

This time the money markets were correct.

Almost every economist was correct.

They have hiked interest rates and seemingly with more conviction than the last time around, this time eight of the nine board members voting for a hike.

But we also had the statement of monetary policy released at the same time, which gives an update on how the Reserve Bank is thinking about the economy and what it's forecasting.

You've gone through that document.

What did you make of what the Reserve Bank thinks is going on right now and what it thinks is going to happen in the future?

So when we did the last episode of ABC Business Daily, it was with Michael Yander.

We'd read the statement of monetary policy, but we hadn't heard from Michelle Bollick.

I thought there were a few interesting parts to the press conference she had with members of the press.

One, of course, is I think she genuinely does feel threatened.

the impact of these interest rate hikes.

She understands, maybe not personally, but she understands how it impacts other people.