Rate cut expected despite Abbott hoping otherwise
APN NewsdeskTHE Reserve Bank is expected to cut the country's cash rate when it meets on Tuesday, a move Liberal Party Leader Tony Abbott says would highlight the weakness of the Australian economy.
Most economists are predicting a 25 basis point cut, which would reduce the cash rate to a historically low 2.5%.
In what was seen as a pre-emptive strike, Mr Abbott said an easing of the cash rate would not be a "win for the government".
Now, obviously in a situation of a flat lining economy in some respects, not in all respects, but in some respects, lower interest rates are helpful," Mr Abbott said.
"But we've got to appreciate ... that if there is a cut tomorrow ... that won't be some kind of a win for the government, it will be a result of the fact that the Reserve Bank judges that our economy needs a boost and I've got to say it's not getting a boost from the policies of this government."
Coalition treasury spokesman Joe Hockey said a cut would show the RBA was "worried" about the economy.