Cost of living crisis

Wednesday, 05 July 2023

Despite the independent Reserve Bank putting interest rates on hold today, the battle against inflation is far from over.

Shadow Treasurer Angus Taylor said there is still more pain in the pipeline for almost half a million Australians shifting from fixed to floating rates in the second half of this year. 

“The Reserve Bank has made it clear that inflation is still too high and further tightening of interest rates may be necessary,” Mr Taylor said.

“Solving this inflation crisis cannot be left to the Reserve Bank. The government has many policy levers it can pull to lessen the load on mortgage holders but instead it has its foot on the accelerator while the Reserve Bank has its foot on the brake.

“Labor has spent an additional $185 billion since it came to government – that’s $7,000 for every Australian.

“The government needs to get its eye on the ball and start treating inflation as priority one, two and three.

“Whether it’s Labor’s Canberra Voice or its union-led IR agenda, these are the wrong priorities for our current challenges. 

“Labor’s two budgets have failed Australians who are now paying a very high price for Labor’s economic mismanagement – particularly those with a mortgage.

“The longer it takes for the government to start acting on inflation the longer high interest rates will stay.”