Politics With Michelle Grattan: Jim Chalmers Flags Deal On Reserve Bank's New Structure Is Close

(MENAFN- The Conversation) Cost of living remains at the top of people's minds as inflation stays sticky. With an election in less than a year, the government has been doing what it can to address some of the pressures. But the Reserve bank doesn't envisage an interest rate cut this year, and has suggested spending by governments is keeping inflation higher for longer.

On Thursday, new figures showed employment has surged, but the unemployment rate ticked up to 4.2%, from 4.1%

Treasurer Jim Chalmers joined the podcast to discuss a range of issues.

Chalmers is optimistic he is close to a deal with the opposition over his long-awaited reforms to the Reserve Bank. The plan is to have two boards rather than one: There would be a new board of experts to take over responsibility for monetary policy.

Bank Governor Michele Bullock's recent comments about strong government spending, and the observation by the bank's chief economist Sarah Hunter that the economy was running a“bit hotter” than the bank previously expected sparked headlines about the government and the bank being at odds. Chalmers is anxious to stress what they agree on but firmly rejects the suggestion of the economy being hot:

On the lacklustre reception of the budget, Chalmers says he keeps his expectations realistic, and he remains confident he's made the right economic decisions:

On the latest employment figures:

Although real wage growth is sluggish, Chalmers highlights the government's record on wages especially on the gender pay gap:

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