Green light for further interest rates cuts
The Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) has left the Reserve Bank no choice other than to cut rates at its next meeting, the CFMEU said today.
CFMEU National Secretary Michael O’Connor said the MYEFO gives a green light to the RBA, which has a responsibility under its Act to promote full employment.
“The MYEFO has indicated we are on target for a budget surplus and inflation remains low. The RBA has a clear obligation to cut rates and relieve pressure on sectors of the economy that are doing it tough, like manufacturing and housing,” Mr O’Connor said.
“There is overwhelming evidence that manufacturing and construction in this country are both struggling with the high dollar and cheap – often substandard - products from overseas. In the case of the manufacturing sector, the latest data shows it is shrinking.
“The RBA can relieve pressure on these struggling sectors by cutting rates, stimulating economic activity and putting downward pressure on the dollar.
“The onus is now on the Reserve Bank board to take one of its core obligations - to promote jobs - seriously.
“That is the community expectation and it is the expectation of our members.”
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