Australian Council of Social Service (ACOSS) Media Release
ACOSS is deeply disappointed by today’s decision by the Reserve Bank of Australia to leave interest rates on hold, saying there is a missed crucial opportunity to deliver relief to millions of people doing it tough.
“Today’s decision is a blow for millions of people in Australia on low and modest incomes who are struggling to cover the basics,” ACOSS Acting CEO Jacqueline Phillips said.
“It means that it will take longer to restore growth in jobs and wages after a decade of stagnation.
“With inflation now well within the target range, there is no justification for keeping rates at punishingly high levels. Economic conditions clearly support rate reductions and the RBA’s inaction today means people will continue to struggle.
“Low unemployment is not causing inflation and should be celebrated. With job vacancies declining, unemployment will rise further unless interest rates are reduced. The longer rates remain high, the greater the risk that unemployment will rise and more households will be pushed to the brink.”
ACOSS says the government also has a role to play in providing relief and reducing financial pressure beyond decisions taken by the RBA.
“We need effective action to lift incomes and ease cost pressures for struggling households,” Ms Phillips said.
“We are calling for an urgent increase to social security payments to lift the incomes of those with the least, as well as further investment in social housing and home energy upgrades for low-income homes to improve housing affordability and lower energy bills.”
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The decision was a sensible one given the global economic uncertainty induced by Trumps antics.
Today’s interest rate decision by the RBA – to hold the cash rate – is a demonstration of why politicians and lobby groups, and apparently some banks that should know better, are foolish to attempt to second-guess central bankers who (this may surprise) generally do know what they’re doing.
There are plenty of families who’ve barely survived the last two years and we’re told that inflation, which has contributed to their misery, is now under control. I do understand there are other factors, but relief is desperately needed. People have been losing their homes every day, these past 2 years, and many others in severe financial distress. The victims of these high mortgage interest rates did not cause inflation or any of the other factors, but they have been made to pay for it. And banks have done very nicely out of it. What did banks do to deserve the extra billions?
Richard Laidlaw:
The RBA is very much hostage to the neoliberal ideology of its members. They know what they’re doing all right, but it is not done for the benefit of the bulk of the populaace.
The Reserve Bank has kept the cash rate at 3.85%, after cutting it in February and May and with a strong probability of cuts in August or November or both.
I agree with Perry and Richard that we have to recognize that Trump is a volatile and erratic factor and we need caution in our monetary policy at the present time.
It is notable that the RBA first started raising the cash rate when Labor was elected with a bunch of rises every month for a year, held the rate for almost the next year until we finally achieved a rate cut.
Before being confirmed as the replacement for Lowe it was well known that Bullock was a clone and, like Lowe, a Lieberal sympathiser so I keep asking why Labor gave her the job. Basically shooting themselves in the foot, just like with the craptastic NACC, also staffed with Lieberal stooges.
Bullock has pulled out just about every single pathetic excuse to not cut rates since she was appointed and even now still cannot help herself despite pretty much the entire finance sector 97% certain of a rate cut this month.
It is really not a good look for the RBA who are supposed to be independent so perhaps it is time for Labor to sack Bullock and install a real impartial head of the RBA.
Pete, I have come to the conclusion that any move Labor (and the Liberals) make, is not for our good, but for the good of the political elite’s chances at gaining government, enriching tax avoiding multinationals including banks and other donors, and doing the bidding of the US. And I believe it will only get worse. The people of this country have a very low priority and corruption is the name of the game.