Scott Morrison insists he and the Reserve Bank are on the same page in their desire to breathe life into the sluggish economy.
Reserve Bank Governor Philip Lowe argues there is an urgent need for more federal government-driven activity, believing its signature income tax cuts will only go so far.
“We agree – and have agreed – for a long time,” the prime minister told ABC radio on Friday.
Mr Lowe is urging the government to borrow more money to pump into public infrastructure projects.
The prime minister said years of coalition budgets had been heavily focused on roads and rail.
“That’s exactly what we are doing,” Mr Morrison said.
“That might be a surprise for those who are coming late to the debate but we have known about this for a long time, that’s why we have been announcing these projects.”