David Koch blasts government spending as Australians hit with another interest rate hike and extra mortgage costs

Former Sunrise host David Koch has unleashed on governments over their spending after the Reserve Bank of Australia delivered its fourth rate hike this year, pushing interest rates to a 15-year high.

The latest increase will add about $91 a month to repayments on a $600,000 mortgage, with the RBA signalling further rises could be on the way.

WATCH THE VIDEO ABOVE: Fourth rate hike pushes mortgages to 15-year high

The Compare The Market economic director argued Australian households are being left to shoulder the burden of fighting inflation as mortgage holders face another interest rate hike.

He told Sunrise the latest increase would leave average mortgage holders needing to find an extra $5500 over the next 12 months, on top of the financial pressure already facing families.

“That’s after-tax dollars. You’ve got to be earning $7500 extra. It’s getting ridiculous,” he said.

The rise places Australia second only to Iceland among developed economies for its cash rate.

Koch took aim at the government’s response to Australia’s high interest rates, arguing that increased public speaking was working against the Reserve Bank’s efforts to bring inflation under control.

“We’ve got to ‘fess up,” he said.

“You could sense the frustration in Michelle Bullock, the Reserve Bank Governor, yesterday at a press conference when she was asked if global oil prices are driving inflation around the world.”

Koch said the RBA governor had made clear domestic demand was the major driver of inflation, arguing that government spending was contributing to that demand.

“Domestic demand is economic speak for spending more than we should be, and that’s basically coming from governments.”

He said households had already tightened their belts while governments at all levels continued to spend.

“Michelle Bullock challenged Australian households to go easy, tighten their belt, fight inflation,” he said.

“But the counter to that is governments, all levels of government, all persuasions of government, have increased their spending and that’s countering what we’re doing.”

Treasurer Jim Chalmers defended the government’s spending on Sunrise on Tuesday, telling host Nat Barr it had reduced spending, despite mounting pressure over the latest interest rate rise.

But Koch took issue with those comments, labelling them “bull dust”.

“I’m just frustrated with it. You have politicians talking BS,” he said.

“They’ve actually got to sign up for something to take action to say to you and I and Australian households, ‘We’re with you on this. We’re going to fight inflation together. This is what we’re going to be doing’.”

Koch called for a new agreement between federal, state, and local governments to limit the inflationary impact of public spending and rising charges.

He proposed a formal fiscal policy commitment requiring governments to keep fees and charges below 2.5 per cent when inflation exceeds 3 per cent.