Former Sunrise host David “Kochie” Koch has urged Reserve Bank governor Michele Bullock to explain how government spending may be contributing to Australia’s inflation before imposing further costs on mortgage holders. His intervention comes as major banks warn borrowers to prepare for another interest-rate rise, with markets pricing in a possible cash rate of 4.6 per cent on 29 September.

Koch cited stronger-than-expected economic growth, rising public spending, public-sector employment and government-influenced prices as potential inflation drivers, rather than excessive household spending. He noted that household spending rose only 0.4 per cent, the saving ratio reached 6.5 per cent, unemployment rose to 4.5 per cent and interest payments now account for 5.8 per cent of household income; he argued further rate rises could penalise households for inflation pressures partly created by government decisions.