Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

Mr President, I will take this opportunity to inform the chamber that the Reserve Bank has just announced that it will be reducing the official cash rate by 100 basis points to 4.25 per cent. We join with Australian families and businesses in welcoming this substantial relief. This is a vital rate cut from the Reserve Bank delivered at a time when all our joint efforts are directed towards strengthening the economy and protecting jobs. The Rudd government and Australian families expect banks to pass the cut on responsibly and fully. I indicate that already the Commonwealth Bank has advised it will pass on this decrease in full.

Mr President, I have spoken many times in this chamber about the substantial challenges that confront our economy. These challenges originated in global financial markets. Given the speed and scale of subsequent events we are not immune to the new-found real economy realities which confront major and developing economies around the world. Today’s decision by the RBA means that monetary and fiscal policy are working together to give relief to families and protect jobs.

That is why this government was so decisive and swift when it decided to introduce its economic strategy and when it fought against those opposite to deliver a budget surplus, which would give us the capacity to respond when the time was needed. That time is now. As we have repeatedly said we will take whatever further action is necessary to protect Australian families and protect Australian jobs unlike those opposite who want to sit on their hands and pretend that nothing is happening.