RBA Calls On Government To Do More To Boost Economy

RBA Calls On Government To Do More To Boost Economy
The Reserve Bank of Australia has made a rare public appeal to the Morrison government to do
more to boost a sliding economy after it sliced official interest rates to one of the lowest levels in
the world.
Governor Philip Lowe, after cutting rates by 0.25 of a percentage point to a record low of 1 per
cent, said the country should "not rely on monetary policy alone" as analysts predicted even
more cuts would be needed to drive down unemployment and push up wages.
Dr Lowe urged Treasurer Josh Frydenberg to lift borrowing to spend up on infrastructure while
increasing fiscal and productivity measures after the first back-to-back interest rate cuts since
2012.
"We will achieve better outcomes for society as a whole if the various arms of public policy are
all pointing in the same direction," he said in Darwin on Tuesday.
Mr Frydenberg said the economic fundamentals were "sound" despite growing local and
international headwinds that have plunged Australia's official interest rate to sixth lowest in the
world.
"We should all speak with confidence about our economy because it will secure further
confidence," Mr Frydenberg told the Coalition party room on Tuesday.
The Australian Taxation Office is getting ready to issue a $1080 boost to millions of workers in
their tax returns in July as the Coalition closes in on passing its $158 billion, 10-year income tax
package.