Today’s decision by the Reserve Bank to cut the cash rate to 0.5 per cent is a new low for the cash rate and a new low for the Morrison Government’s economic credibility.

Today’s decision represents the fourth interest rate cut in 10 months, leaving the cash rate close to zero, at only one-sixth what it was during the depths of the Global Financial Crisis.

Australian families, workers and businesses were already counting the cost of Scott Morrison and Josh Frydenberg’s inaction and ineptitude before the fires and Coronavirus hit.

The absence of economic leadership and an economic plan has left Australians dangerously exposed to economic risks.

In his statement today, the RBA Governor highlighted that unemployment has increased and that subdued wages growth “is not expected to pick up for some time.”

While the virus will have a substantial economic impact it doesn’t explain or excuse seven years of economic mismanagement and underperformance under the Liberals and Nationals.

Before the fires and the virus, growth had already deteriorated, stagnant wages were driving weak consumption, business investment and productivity were falling, and government debt and household debt had reached record highs.

The Reserve Bank, the business community, Labor and even members of the Morrison Government have raised concerns about the ineffectiveness of further rate cuts, which have all been ignored by the Prime Minister and Treasurer.

Australians are crying out for economic leadership and an economic plan, but Scott Morrison and Josh Frydenberg have been totally unwilling or unable to come up with either.