West Syd will love this interest rate cut

Today the Reserve Bank of Australia (RBA) cut the cash interest rate by 25 basis points - great news for Western Sydney, whatever way you look at it.

It's something I called for a few weeks ago in an op-ed I wrote for the Daily Tele. Here's a copy if you're interested 'West has vital interest in rates coming down', The Daily Telegraph, 21 May 2012

But here are, from my perspective, some more points worth making about today's rate cut:

  • At 3.50 per cent the official cash rate is lower than it was at any time under the last Liberal Government - and 325 basis points lower than when they left office.

  • FACT: Interest rates are now lower under Labor.

  • It means a family on a $300,000 standard variable rate mortgage is now paying more than $3,500 a year less in repayments than when the Liberals left Government.

  • Today’s interest rate cut is another cash boost for families, helping offset cost of living pressures.

  • This comes on top of the financial assistance from the Government already hitting their bank accounts.

  • That adds to the relief the Government is already providing in the Budget through the Schoolkids Bonus the Liberals opposed and our tripling of the tax free threshold.

  • A disciplined, responsible approach to the Budget gives the RBA room to cut rates. Frankly, not having the right economic strategy limits the options available to the RBA.

  • Finally, when you cast your mind back to all those 2004 ads and campaign brochures promising to keep rates at record lows, please remember this: rates went up 10 straight times under the Liberals.

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Ed Husic MP
Federal Labor Member for Chifley

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