Coalition Leader Peter Dutton’s assertion that the Reserve Bank of Australia is at risk of cutting rates “too early” shows that he has no idea about the cost-of-living pressures that working families face.
Peter Dutton’s claim that there was a “real concern to economists and families” that if the RBA cut official interest rates “too early, it would have to increase interest rates later on” shows how little he knows about working families and the economy.
Working Australians cannot be expected to shoulder high interest rates for a moment longer than necessary, now that inflation has dropped to well within the RBA’s target band.
Working people need interest rates to start coming down when the Reserve Bank of Australia meets next week to decide the cash rate.
Central banks in other developed countries started cutting rates months ago and Australia is lagging, putting 1.1 million newly created jobs at risk and household budgets under further unnecessary pressure.
Inflation is now at 2.4 per cent, well within the RBA’s target range of 2 – 3 per cent. There is almost a broad consensus among economists that rates should and will be cut next week.
Any more delay in cutting rates could tip the economy into the negative and Peter Dutton should know that and stop putting his own political interests ahead of those of workers with mortgages to pay.
Quotes attributable to ACTU Secretary, Sally McManus:
“Peter Dutton’s claim that working families are concerned the RBA could cut interest rates ‘too early’ is plain wrong. No working family has said that to me, and it shows how out of touch Peter Dutton is with the pressures ordinary Australians face.
“Peter Dutton is clearly putting politics and his own political advantage before the interests of working people. It is very concerning that he is happy to put his own interests before the interests of the rest of us, especially when that means less money in the bank accounts of working people.
“After 13 rate hikes, last month’s inflation result the RBA needs to get moving and cut rates next week. Their delay risks job losses. We are already starting to see this in the retail sector as household spending continues to slow. The Reserve Bank Board has got more than what it needs to deliver an official interest rate cut.
“Inflation is coming down even faster than the Bank forecast and any further hold out will only add to the pressure on working families. Waiting until the entire economy grinds to a halt won’t help workers who are hurting financially and have been for many months.”
