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RBA lodges a vote of no confidence

Media Release
Nick McKim 3 Nov 2020

The RBA’s decision to cut interest rates to new historic lows and start a new round of quantitative easing is a vote of no confidence in the Government’s recovery plans, Greens Economic Justice spokesperson Nick McKim says.

“This decision shows the RBA has no faith in the Liberals’ agenda of tax cuts for the super wealthy and more handouts for the big corporate polluters,” Senator McKim said.

“Cutting rates to 0.1 per cent and $100 billion of quantitative easing is a sign that the RBA knows that things will continue to worsen for the economy because of deliberate decisions taken by Scott Morrison and Josh Frydenberg.”

“It suggests that the RBA expects tax cuts will be saved rather than spent, as they were last year before COVID hit."

“The RBA wouldn’t need to be going to such extremes if the Government was actually trying to fix the economy by investing serious money in green infrastructure and setting income support above the poverty line.”

“Australians face more difficult times ahead unless the Liberals dramatically change course and start investing for the future, and ensuring a decent quality of life for all.”

“Under this government, printed money that should pump prime the economy is instead likely to inflate the housing market.”

“This will be doubly so if responsible lending laws are overturned.”

“The double-whammy of cheap money and looser lending standards is a recipe for an even bigger housing bubble.”

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