Live: Taylor defends Coalition opposition to Labor spending cuts after rate rise

Opposition Leader Angus Taylor has defended the Coalition's stance against Labor's efforts to reduce the private health rebate for over-65s after a recent interest rate hike by the Reserve Bank. The Reserve Bank increased interest rates for the fifth time this year to 4.85 per cent, the highest cash rate since late 2008. Reserve Bank Governor Michele Bullock attributed the rate increase to high public and private demand across the country.

Speaking to ABC News Breakfast, Taylor pointed out that federal government spending is too high and needs to be reduced to curb demand. He mentioned that one factor driving demand is the rapid growth of government spending, which is outpacing overall economic growth. Taylor noted that the economy is stalled, with businesses struggling, particularly small enterprises.

When asked about the Coalition's credibility in calling for spending cuts while opposing measures like the over 65 private health insurance rebate, Taylor emphasized that it's overall spending that matters. He stressed that aggregate spending drives inflation and highlighted the International Monetary Fund's (IMF) view that spending is too high.