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For the vast majority of voters, one interest rate cut won’t come close to easing the squeeze on their living standards

Waiting for this rate cut, instead of calling the election late last year, might turn out to be one of Anthony Albanese’s biggest mistakes.

Australian government under ‘immense pressure’ to ease cost of living

It shows the Albanese government’s desperation that Wednesday’s good news about inflation is its big hope for winning the election, now even likelier to be on April 12.

Treasurer Jim Chalmers even hailed the fall in headline inflation as proof of his smarts: “The sorts of things that we are preparing for and planning for are now unfolding.”

Er, Jim: I wouldn’t claim credit for what many Australians are now feeling, with living

standards falling over the past three years.

Still, Chalmers was rightly relieved that annualised inflation in the last three months of last year dropped from 3.5 per cent to 3.2, once you strip away things like the electricity and housing subsidies the government shovelled out to con the Reserve Bank into thinking inflation was lower than it is.

Treasurer Jim Chalmers hailed the fall in headline inflation as proof of his smarts. Picture: Martin Ollman
Treasurer Jim Chalmers hailed the fall in headline inflation as proof of his smarts. Picture: Martin Ollman

At last! That’s only just above the 3 per cent which the Bank says is as high as inflation should go, so odds are growing the Bank will treat close enough as good enough and finally start to cut interest rates at its meeting on February 17 – or, at worst, at its April 1 meeting, after it gets the latest data on wages and unemployment.

But waiting for this rate cut, instead of calling the election late last year, before his latest

fall in the polls, might turn out to be one of Prime Minister Anthony Albanese’s biggest mistakes.

Remember, a cut in mortgage interest rates will help only people who’ve bought their own homes, and haven’t paid them off.

Cost of living pressure ‘not going away’ with inflation drop

And they’ll hardly think one cut makes up for the 12 rate rises under Labor.

For renters and homeowners without mortgages, the cut will mean little.

Indeed, for the vast majority of voters, one interest rate cut won’t come close to easing the squeeze on their living standards.

They’re still paying much more for their electricity, when Albanese promised they’d pay $275 less.

Anthony Albanese may have made one of his biggest mistakes by waiting to call the election. Picture: Martin Ollman
Anthony Albanese may have made one of his biggest mistakes by waiting to call the election. Picture: Martin Ollman

Yes, employment is high, but prices are still rising, and have risen some 15 per cent since Labor was elected.

Housing is still unaffordable for most of the young and the poor.

The tax take is too much.

And that’s just the economy.

The government is meanwhile getting torn apart in the culture wars – on its three flags, the Jew hatred, the tribalism.

Sure, a cut in interest rates will give the government a feather to fly with.

But don’t mistake that feather for a whole wing.

Originally published as For the vast majority of voters, one interest rate cut won’t come close to easing the squeeze on their living standards

Andrew Bolt
Andrew BoltColumnist

With a proven track record of driving the news cycle, Andrew Bolt steers discussion, encourages debate and offers his perspective on national affairs. A leading journalist and commentator, Andrew’s columns are published in the Herald Sun, Daily Telegraph and Advertiser. He writes Australia's most-read political blog and hosts The Bolt Report on Sky News Australia at 7.00pm Monday to Thursday.

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Original URL: https://www.couriermail.com.au/news/opinion/andrew-bolt/for-the-vast-majority-of-voters-one-interest-rate-cut-wont-come-close-to-easing-the-squeeze-on-their-living-standards/news-story/ed675475c0fc57647cf5b344d338b6b4