Today’s decision by the Reserve Bank to cut official interest rates is a win for every family and small business with a mortgage, no matter which horse they backed in the Melbourne Cup.
A mortgage is the biggest burden on most family budgets, so this is some very welcome relief for a lot of families facing cost of living pressures.
Today’s interest rate cut means an average family in the Inner West with a $400,000 mortgage will now pay $65 less a month in interest repayments – that’s a saving of $800 a year.
This rate cut is also welcome news for many of the 22,000 local small businesses owners who make a major contribution to the local area.
The Gillard Labor Government’s disciplined budget management means that the Government has created space for the economy grow without adding to price pressures in the economy.
While other countries are in recession our economy remains strong, meaning more people are in jobs and more opportunities for young people.
In fact, we’ve seen 750,000 jobs created since the Labor Government was elected – that’s 750,000 more Australians bringing home a pay check each week.
The Government’s budget discipline has meant the Reserve Bank has had extra room to move on interest rates.
So we’ll keep managing the economy responsibly in the interests of everyday Australians, just like we did when we fought off recession and kept Australians in jobs at the height of the global financial crisis.