A pre-election interest rate cut could be on the horizon after yesterday's monthly inflation figures. While the headline number ticked up core inflation, which is the reserve bank's preferred measure, fell.
Category
📺
TVTranscript
00:00According to markets, the odds I should say of a rate cut next month did rise after yesterday's
00:08inflation figures.
00:09We saw core inflation drop from 3.5 to 3.2% in the year to November.
00:17Now the Treasurer Jim Chalmers was asked when he thinks a rate cut is going to come, obviously
00:23he didn't want to weigh into that, it is ultimately up to the Independent Reserve Bank to decide
00:29on the cash rate, but certainly the hopes are that they will provide some sort of relief
00:34to mortgage holders.
00:35If not next month, then in the months to come.
00:39What will be watched next is the quarterly inflation figures from the Bureau of Statistics.
00:44They come out at the end of this month.
00:46So lots to watch, here's the Treasurer speaking earlier.
00:50What that tells us is that we are making and have made really substantial and now sustained
00:55progress in the fight against inflation.
00:58And we're pretty confident that the worst of that inflation challenge is behind us,
01:01but we're not complacent about that because we know that people are still under pressure.
01:06So the Treasurer points out that inflation is heading towards that target range that
01:12the RBA hopes for of between 2 and 3%.
01:17And if there is a rate cut before the election, we can expect that the Labor government will
01:23continue to say that it's set the right economic settings to allow for a rate cut.
01:29But when we heard from the opposition yesterday, Shadow Treasurer Angus Taylor, he was pointing
01:33out that inflation still isn't where it needs to be.
01:37Also saying that really for Australians, they're not feeling any relief, whether it is in terms
01:42of interest rates or at the checkout.
01:45Now all of this happens as the Prime Minister, Anthony Albanese, continues his tour of the
01:49top end of Australia.
01:52Today he'll be in Kununurra in Western Australia, where he's set to announce around $200 million
01:58for housing and community infrastructure.
02:01And we'll hear from the Prime Minister a little later today, Mel.