PETER STEFANOVIC:
Let's go live to Canberra. Joining us is the Assistant Treasurer, Stephen Jones.
Stephen, good to see you. Thanks for your company, as always. Now, rates on hold, as we know yesterday. There is, though, a greater concern of what lay ahead, though. You've got these rising yields on American bonds. Our share market is very wobbly at the moment, too. Are you still of the view that rates have peaked here?
STEPHEN JONES:
Look, we know that inflation's peaked, but in its statement yesterday the Reserve Bank expressed the view that it wanted to see it come down and come down quickly. So, does the government, so does households. Inflation means cost-of-living pressure and with households already doing it tough, we want to see inflation coming down. Our priority focused on providing the cost-of-living relief and, in that context, welcome the fact that the Reserve Bank has put rates on hold for another month, the fourth month in a row. And it's a wait-and-see exercise now, focused on the data, focused on what's coming on – at us from around the world and here in Australia.
STEFANOVIC:
Right. So, I mean, inflation bumped up last month. Are you suggesting that that might be a one off or the September quarter might reveal something a little bit more stable?
JONES:
Look, good news in the winds, but obviously we are very susceptible to what's coming at us around the world, Pete. So, the Reserve Bank has expressed its concern about their potential impact and increase in oil prices. So are we. And we know that Australian households and businesses are doing it tough and petrol and oil prices are a significant part of the family budget, which is why we're focused on ensuring we don't make a bad situation worse by adding to the inflation problem and providing some relief where we can.
STEFANOVIC:
Okay. Are you considering cuts to excise at all on the fuel front?
JONES:
Look, I think the Prime Minister made it quite clear when he was asked that question yesterday that we're not going to be making significant tax decisions on the jump or on the hop. Over the course of the last two years, twelve months, we've seen oil prices rise and fall and now rise again. It wouldn't be smart of us to be making long-term decisions based on short-term variations in international oil prices. We're focused on providing the sorts of cost-of-living relief around household energy bills, around medicines, around childcare that can make a practical difference without blowing up the budget or without making the inflationary situation worse.
STEFANOVIC:
Can you give – punt us any kind of certainty about when fuel might drop below $2 a litre again, or is that kind of out of your hands?
JONES:
We are, to some extent, tied to the international price of oil. Interestingly, and to put this in a bit of context, I've just got back from the UK and Europe last week, they're paying as much in pounds as we are in dollars. So, this is not just an Australian factor. Oil prices around the world are pushing up bowser prices around the world and households and businesses are furling it. Now, I know that's no relief to a household that's trying to make the ends meet and try to balance the books, but I think it does put into a bit of context what we can do here in an Australian environment when we are very influenced by what's happening with oil prices around the world.
STEFANOVIC:
All right, Stephen. Appreciate it. We'll talk to you soon.