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$8 billion worth of government income tax cuts has helped fuel inflation, according to ANZ.
In an Australian Financial Review report, ANZ estimates that each 0.25 per cent interest rate rise reduces disposable income by $2.5 billion.
It has taken three 0.25 per cent interest rate rises, plus the banks 0.15 per cent interest rate rise, to offset the impact of the tax cuts on the economy, the report said.
Published: 06-02-08
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