RBA Urged to Cut Rates to Ease Financial Pressure
ACOSS is calling on the Reserve Bank of Australia to cut interest rates again tomorrow, warning that continued financial pressure is hitting people on low and modest incomes the hardest.
“With inflation now consistently within the RBA’s target range, further interest rate reductions are clearly needed to avoid further harm to people under severe strain,” said ACOSS CEO Cassandra Goldie.
“Raising interest rates has dramatically increased financial stress among people with low and modest incomes. They need more relief – and fast.”
Dr Goldie said another rate cut would also deliver a much-needed boost to the economy.
“In recent years people have seen their real incomes fall and economic growth has stagnated. In fact, the only thing that has kept us from recession is welcome and much-needed investment in essential publicly funded services like the NDIS, childcare and health.
“Low unemployment is an opportunity, not a problem as some economic commentators suggest. There is no sign that reducing unemployment further would risk a fresh outbreak of inflation. The priority must be achieving the Government’s agenda of inclusive full employment.
“The RBA must cut rates to help ease financial pressure and get incomes growing again.”
“ACOSS will also continue to work with the government on further action they can take to lift incomes and reduce cost pressures.
“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 housing to reduce housing insecurity and lower energy bills.”