Deputy Opposition Leader Sussan Ley has said there would be “economic ruin” if politicians decided on interest rates during a fiery debate over Aussies suffering from their Sunrise mortgages.
Victorian Premier Jacinta Allan, Queensland Premier Steven Miles and WA Premier Roger Cook have all called on the Reserve Bank of Australia to cut cash rates.
Mr Miles said: ‘There is no rule that the banks can’t cut their interest rates first. Many of them increased their rates before the RBA.
“They’re making record profits while Queensland families are struggling. It’s time for them to lower their rates so that families have more money for food.”
Sunrise host Natalie Barr was joined on Friday’s breakfast program by Education Minister Jason Clare and Ms Ley when she asked whether it was appropriate for Prime Ministers to tell the RBA what to do.
‘It’s a matter for the RBA and to get them to cut rates we need to get inflation down. It happens. This week we received good news. We have seen inflation fall by around half on a month-on-month basis over the last 12 months,” said Clare
“We know there are many Australians who are struggling and would like to see their interest rates fall.”
Barr agreed, but said some retirees who rely on their own savings may want interest rates to remain high because they benefit from it.
Ms Ley immediately took aim at the three Labor Prime Ministers who had already spoken in favor of a rate cut, saying this was ‘economic idiocy’.
“If we let politicians set interest rates, interest rates would always be low and the Australian dollar would be worthless,” she said.
‘For example, we would have an economic collapse like you see or have seen in Argentina and Zimbabwe.
Barr was joined at Sunrise on Friday morning by Deputy Opposition Leader Sussan Ley and Education Minister Jason Clare as a war of words broke out over interest rates.
“So this is quite insane and the suggestion that three Prime Ministers, I don’t know if they can even spell RBA, should be responsible for interest rates in this country.”
Ms Ley added that many Australians were “hurt” and fired another shot at the Labor Party.
“We know that the promised cost-of-living relief is inadequate, will take too long to be achieved and will not solve the pain of living,” she added.
Mr Clare then accused Ms Ley of throwing “political mud on morning television”, saying the Prime Ministers’ positions reflected how many Australians felt.
“And I think if you Google it, you’ll find that Liberal prime ministers said the same thing,” he said.
“The bottom line is the RBA makes the decision. If we want to see interest rates fall, we need to ensure inflation falls.
‘Guess? The action we are taking is working. Inflation is falling. It has halved in the last 12 months.”
Ms Ley also took the opportunity to attack Labor over their proposed stage three tax cuts.
She held up $15 in cash and claimed the majority of Australians would get this per week if Mr Albanese reduced the cost of living.
Natalie Barr told Ms Ley that “pressure” was being put on the opposition to make their position known on the tax cuts
Albanese announced the third phase of tax cuts at the end of last month.
Initially, the program was intended to benefit high-income earners, until the government abolished the program in favor of larger tax cuts for lower and middle income earners.
Under Labor’s revised tax cut package, someone earning $100,000 a year would get back $2,179 a year in tax relief if the package passes the Senate before July 1.
At the other end of the scale, those earning €40,000 a year – less than the full-time minimum wage of €45,906 – will get back €654.