The lowest interest rates Australia has ever had are not enough on their own to turn around an economy which is floundering under the Morrison Government.
 
The RBA has already cut the cash rate to a record low of 1 per cent – one third of the ‘emergency lows’ seen during the Global Financial Crisis.
 
After two post-election rate cuts in two months, this third-term Liberal Government lacks an agenda and has no plan for growth.
 
On their watch, economic growth is the slowest it’s been in the ten years since the Global Financial Crisis.
 
Wages are stagnant, 1.8 million Australians are looking for work or more work, household debt is high, and living standards are going backwards.
 
According to the Reserve Bank Board today:
 

• “Economic growth in Australia over the first half of this year has been lower than earlier expected, with household consumption weighed down by a protracted period of low income growth and declining housing prices.”
• “There has, however, been little inroad into the spare capacity in the labour market recently, with the unemployment rate having risen slightly to 5.2 per cent.”
• “Wages growth remains subdued and there is little upward pressure at present”

 
The Morrison Government’s denial about the weakness in the economy on their watch has left the Reserve Bank with little remaining room to support growth.
 
If Scott Morrison and Josh Frydenberg were doing a good job managing this economy the RBA wouldn’t have needed to cut rates to historical lows.
 
It is time the Liberals stopped wasting everyone’s time playing politics and talking about Labor, and focussed instead on a plan to turn this floundering economy around.
 
TUESDAY, 6 AUGUST 2019