TED O’BRIEN MP
DEPUTY LEADER OF THE OPPOSITION
SHADOW TREASURER
MEMBER FOR FAIRFAX
MEDIA STATEMENT
Tuesday, 8 July 2025
The Reserve Bank’s decision to hold the cash rate at 3.85% confirms what millions of Australians are feeling every day – the cost of living remains too high and interest rates are staying higher for longer.
Today’s decision means average mortgage holders will continue paying an additional $1,900 in interest payments each month than they were before Labor came to office.
This is a direct consequence of Labor’s homegrown inflation and its failure to boost productivity.
While households have been forced to make tough decisions, the Albanese Government has kept spending at record levels. As the RBA has repeatedly said, strong demand from the public sector has been a key driver of sticky inflation.
Commonwealth spending is up 17% in the last two years and over the same time 80% of employment growth has come from the non-market sector.
After inheriting government spending of 24% of GDP from the Coalition, Labor is driving it up to 27% this financial year.
Productivity has fallen by over 5% since Labor came to office.
The Treasurer was ready to take credit for a drop in the cash rate today but instead he’s pointing the finger overseas to camouflage his own economic failures.
Yet comparable economies including Europe, Canada and New Zealand saw the start of multiple rate cuts up to eight months before Australia, and that’s a direct consequence of the Albanese Government’s spending spree and productivity fail.
Under Labor the economy has stalled, households are in recession, industries are collapsing, businesses are closing, investment is down, and productivity is going backwards.
It’s no wonder the OECD reports Australia having the biggest drop in living standards among all developed economies.
ENDS