If the Liberals were doing a good job managing the economy the Reserve Bank wouldn’t have needed to cut interest rates to another new record low today.
Australians are struggling, the economy is growing at its slowest pace in a decade, wages are stagnant, and the RBA is getting no help from the Morrison Government.
Today’s decision to cut the cash rate to 0.75 per cent highlights the urgent need for the Liberals to bring forward a plan to responsibly stimulate the floundering economy.
After three rate cuts since the May election, record low interest rates are now one quarter of what they were during the depths of the Global Financial Crisis.
In his statement today, the RBA Governor noted that growth was “weaker-than-expected”, that “employment growth is likely to slow” and that “wages growth remains subdued and there is little upward pressure at present”.
The Government has recklessly left the Reserve Bank to do all the heavy lifting instead of coming up with a plan to support the economy.
Right when the Australian economy needs action to turn things around, Scott Morrison and Josh Frydenberg have a political strategy but not an economic plan.
The Government has not lifted a finger despite the Treasurer admitting further interest rate cuts might be losing their effectiveness.
It is time the Liberals brought forward the mid-year budget update to present a plan to get the economy moving again.
The Liberals’ lack of economic plan is leaving Australia dangerously exposed to turbulence in the global economy.
The RBA faces an increasingly difficult balancing act of trying to support the economy, while preserving flexibility should global downside risks materialise.
TUESDAY, 1 OCTOBER 2019