Natalie Barr:
Now the RBA has officially pulled the trigger, delivering much needed relief in the form of a rate cut for millions of Aussies. The decision, driven by easing inflation, saw the cash rate drop by 0.25 of a per cent.
Matt Shirvington:
And Australia’s big 4 banks wasted no time passing on the reductions within minutes. But despite the welcome news, economists are issuing a sharp warning to mortgage holders, reminding them not to get too comfortable.
Barr:
For more, Treasurer Jim Chalmers joins us now in Logan, Queensland. Good morning. Are you having a champagne breakfast this morning in celebration?
Jim Chalmers:
Definitely not, Nat. Good morning from Logan. Look, I thought yesterday’s decision from the independent Reserve Bank was a very welcome one for millions of Australians. It means that people will get the rate relief that they need and deserve. We know that it won’t make all of the cost‑of‑living pressures in our economy disappear overnight, but it will help. And that’s a good thing.
Shirvington:
Yeah. Do you think one cut will make Aussies forgive you for those 2 years of pain they’ve been feeling?
Chalmers:
I don’t see it exactly in those terms, Shirvo, as you’d expect, but I do think it will help people with these cost‑of‑living pressures. It’s not the only way that people are receiving help. We’ve got the tax cuts, the energy bill relief and all of the other ways that we’re helping people because we recognise that people are under cost‑of‑living pressures. That’s still the case today, even after this welcome news yesterday. So cost of living will still be the major focus of the Albanese Labor government.
Barr:
The headlines are screaming ‘one cut wonder’ and the RBA Governor really seemed to pour cold water on rate cuts, any more rate cuts anytime soon? Were you surprised by that?
Chalmers:
It’s not unusual for central bank governors to choose their words very carefully and to be cautious about future movements in interest rates. I don’t make predictions about what will happen next when it comes to interest rates either. And a lot of the coverage reflects the fact, I think, that whether it’s the Liberal Party or sections of the media, they didn’t want rates to be cut yesterday. They were very disappointed when they were. And you see that reflected in some of the commentary. That’s not my focus. My focus is on making sure that people get the help that they need and deserve. That’s why yesterday’s rate cut was a good thing.
Shirvington:
My focus is on the upcoming footy season, Treasurer, and trying to plan my weekends ahead. That means potentially an election might get in the way of my weekend plans. Have you locked it in yet?
Chalmers:
No, not locked in yet. Our assumption is that we’ll be handing down a Budget in at towards the end of March. But either way, the election is going to be at some point in the next 3 months. So, at least one of those weekends, Shirvo, you better hope that you’re playing on the Sunday or the Friday or the Thursday night, because there’ll be one Saturday in the next 3 months, it’ll be election day.
Barr:
I don’t know. Nothing says an election is around the corner like a Women’s Weekly spread and we’ve got Albo and Jodie on the front pages. Look at this, are you sure we’re going to wait till May?
Chalmers:
Beautiful pictures, what a photogenic couple. Some beautiful pictures that I saw in today’s media of a very happy couple. I know that there’s some wedding planning going on. But I can assure all of your viewers, whether it’s the Prime Minister or the rest of his government, the main focus is on the cost of living. And that’s why the interest rate cut was welcome news for millions of Australians.
Shirvington:
Yet you’re feeling it. What about the bucks party? You in charge of that? Any plans?
Chalmers:
I’ve seen some speculation about that, but no, no, I’m not in charge of that. Which is probably a good thing. I’m more of a cup of tea and an early night kind of guy these days. And so, I’m sure you can find someone more appropriate to plan the bucks.
Shirvington:
Sounds exciting.
Barr:
Okay, Treasurer, thanks for your time.
Chalmers:
Thanks, guys.