One of the mysteries about today is who will be happier with the RBA’s decision: mortgage holders, or the federal government.
Here’s what Nine’s Political Editor, Charles Croucher, had to say about the political implications of the rate cut.
“Validation… that’s what the government will be saying today, that all the pain that Australians have suffered and all the pain the government has suffered trying to tighten the belt will be now worth something,” he said.
“They have something to show and that is a rate cut now. Did it come fast enough? Is it going to be large enough? Who knows.
“What this does give them though, is a springboard moving forward to for an election, because that’s the next thing we all have to watch…”
“The other thing this has done, and give credit to Michelle Bullock and her team, as well as the treasurer, it’s shown that you can get rates down while also keeping unemployment down, because that was going to be the big hurdle for the Reserve Bank to, in a way, ignore that unemployment number.
“There hasn’t been that pain, there hasn’t been that recession. And now hopefully there are better times ahead.”
