Government hopes surplus figure will cause Reserve Bank to ‘hold fire’ on interest rates

The federal government will post a surplus bigger than the $4.2 billion predicted for last financial year 2022-23, in what it sees as a boon for its economic credentials and something it can politically bank all the way to the 2025 election. “Treasury figures out last week showed that in the 11 months to May 31, the surplus had come in at $19 billion,” Sky News Political Editor Andrew Clennell said. “Once the June figures are in, the surplus is likely hit as high as 20 billion, which would be a record. Mr Clennell said the government hopes the surplus figure will encourage the RBA to “hold fire” when it comes to its decision on interest rates next Tuesday.