Govt doing all it can, Swan says

The government is doing everything it can to stop another hike in interest rates, Wayne Swan says.

AAP

THE Federal Government is doing everything it can to ease the inflationary pressures that could lead to another hike in interest rates, Treasurer Wayne Swan says.

There are concerns surging consumer confidence and better-than-expected economic data will give the Reserve Bank cause to consider a rate increase in August.

But Mr Swan said the economic situation was not that simple, citing Treasury forecasts that have trimmed Australia's predicted growth rate.

When asked whether rates would rise (before) from an election, Mr Swan on Thursday told ABC Radio: "That's entirely a matter for the Reserve Bank.

"From a government perspective we are doing everything we possibly can to invest in capacity in the economy and ease inflationary pressures."