More stimulus in next month’s budget:PM

Expect further economic stimulation in the budget that the Federal Treasurer, Wayne Swan, will bring into parliament on May 12.

We have that information on the word of a usually reliable source, the Prime Minister, Kevin Rudd.

The Prime Minister was unusually frank about that,when he met reporters in the southern Perth suburb of Spearwood yesterday.

“The truth is this,” he said.

“The global economic recession makes it inevitable that we will have a recession in Australia.”

And he said:”That means that wer’re going to have to make even stronger our economic stimulus strategy.”

The Prime Minister made it absolutely clear, as he said this, that he was speaking in the context of the budget that Mr Swan is already preparing.

Mr Rudd said bluntly, too, that Australia’s unemployment “will rise” as a result of  the global crisis.

He also kept up the government’s pressure on Australia’s banks, particularly those which have just raised the rates they charge on their loans.

Mr Rudd said bank customers should “vote with their feet” if they found their bank doing that.

Mr Swan had admitted, earlier in the day, that Australia’s growth is already “slowing dramatically.”

He has predicted, too,  that Australia’s unemployment rate will be above 7 per cent by the end of this year.

But that forecast is likely to be revised – upwards – in next month’s budget.