Record low interest rates are not enough to turn around an economy which is floundering on the Liberals’ watch.
The RBA is already doing all the heavy lifting, having cut the cash rate to one third of the ‘emergency lows’ seen during the Global Financial Crisis.
The Reserve Bank now faces the difficult balancing act of trying to support the economy with record low interest rates, while preserving flexibility should global downside risks materialise.
Today’s statement from the RBA continued to highlight that economic growth has been lower than expected, with household consumption weighed down by a protracted period of poor wages growth.
After six years of this Liberal Government, Scott Morrison shouldn’t dismiss these longstanding home-grown weaknesses as the result of ‘a difficult quarter’.
After two post-election rate cuts, this third-term Liberal Government has no plan for growth.
Right when the Australian economy needs action to turn things around, Scott Morrison and Josh Frydenberg have a political strategy but not an economic policy.
The Liberals’ lack of an economic plan is leaving Australia dangerously exposed to turbulence in the global economy.
TUESDAY, 3 SEPTEMBER 2019