RBA fails households and fails the nation – again

The Reserve Bank of Australia had a great opportunity to give Australians – and the nation’s sluggish economy – something both desperately needed before Christmas.

But, once again, the RBA has failed.

By leaving interest rates on hold at 4.35%, the Reserve Bank has failed to do what is right for Australians.

It has failed to do what is right for the economy.

And it has failed to learn from its own mistakes.

Australians have suffered unnecessarily for too long. Cutting interest rates would have eased that suffering. Cutting interest rates would have provided some sensible stimulus to an economy which has almost ground to a halt.

“The RBA’s interest rate settings have smashed households and smashed businesses,” said Greg Jericho, Chief Economist at The Australia Institute.

“Headline inflation is within the bank’s target band. What is it waiting for?

“Last year’s review of the Reserve Bank criticised it for keeping rates on hold for 30 meetings in a row, when a rate cut would have stimulated a stagnating economy. It’s happening again.

“An interest rate cut today would not have been an act of Christmas goodwill. It would have been an act of common sense.

“Now, thanks to the RBA, many Australian families face an unnecessarily bleak Christmas.”