Tom Elliott’s grim warning following yesterday’s interest rate hike

Tom Elliott has issued a grim warning following the news on Tuesday that the Reserve Bank increased interest rates by 25 basis points to 3.85 per cent.

Press PLAY to hear the 3AW Mornings host’s prediction

“Let me say, there’s an old saying that interest rate rises are like cockroaches,” the 3AW Mornings host said.

Following the announcement, Tom Elliott asked Federal Treasurer Jim Chalmers if the government had planned to cut government spending to curb inflation.

Press PLAY to hear the full interview with the Federal Treasurer

Speaking on 3AW Mornings, the Federal Treasurer said, “We’ve done that in all of our budget updates, and that is our objective in the May budget as well.”

“People can expect us to continue to manage the budget in a responsible way,” he added.

Image: iStock/3AW