‘Bad joke’: What you said about the Reserve Bank’s rate cut

While many were quick to welcome last week’s rate cut, some say it’s a “bad joke” that’s unlikely to mean much for households because of one thing. HAVE YOUR SAY

The Reserve Bank’s decision last week to cut interest rates by 0.25 of a percentage point was welcome relief to many mortgage-holders across the country struggling to meet monthly repayments.

And while many lauded the rate cut “as the start of home budget festivities”, Madonna King, however, cautioned that is was unlikely to “mean much” for households against the backdrop of rising prices.

“This rate cut is a magic trick, and the joke is on us,” she wrote. “It just doesn’t add up.”

Reserve Bank of Australia Governor Michele Bullock. Picture: NewsWire / Martin Ollman

Many readers seemed to agree, and pointed to the fact that it was our politicians who were out of touch with ordinary Australians.

Others though disagreed, arguing that people needed to learn to live within their means, rather than fork out $12 for a cup of coffee.

See what you had to say below and join the conversation >>>

WHAT YOU SAID

Our politicians are out of touch

Peter

Madonna you have nailed it ... this is just another round of the same old economic circle jerk. They tell us to tighten our belts when it suits them, then loosen up and spend when they need a boost. Meanwhile, the cost of essentials like coffee (and let’s not even start on rent and groceries) keeps creeping up, making every ‘solution’ feel like a bad joke. We’re stuck in a loop where the ones calling the shots never seem to feel the pinch themselves. When does this cycle actually break?

Jackie

Here is charmers telling landlords to think about their rent increases because we have now had a rate cut but he has seriously no idea. We have had 13 rate increases and everything else has skyrocketed like rates insurance water maintenance. These politicians live in their own world.

Monique

Exactly … all rates (property and water) have increased. Body Corp fees go up every year. All of the insurance go up every year as well. An $80 to $100 cut per month does moment put much of a dent on these increases so I’d imagine rents will still be increasing.

Dave

If inflation has dropped how come EVERYTHING is still going up in price? Car insurance $300 more? Home and Contents insurance up $800 more. Food prices still increasing? Somebody is telling Porkies again. Poor Jimmy and Albo are so out of touch with the real world of most Australians.

Hoppy

Albanese doesn’t care. He’s on $400,000 for life. And it’s all on us. The mug taxpayer voters

Cynical NQLDer.

It must be wonderful, that right or wrong, for politicians to be so secure in the knowledge that they will always have their excessive pension and concessions to save them stress and hardship so they can make bad decisions for everyone else. I do wish I had jobs where I could be careless, but really just pretending I’m working for the good of others; and then get heaps of money. Nah, I’m just a veteran and ex ambo. I never did any good for anyone. Did I? But now I can’t afford the therapeutic things that allow me to even go outside. Thanks Queensland and Australia for leaving me just enough to suffer.

Regional Ranger

She is absolutely correct. This rate cut though touted by the Govt as the greatest thing since sliced bread will have absolutely no effect on household budgets. If fact, with both parties about to launch into full Election mode there will be a staggering amount of expensive promises being made, all of which will have to be paid for somehow. Who will pay for them; the very people who were given all of these free handouts will be facing increased charges and new taxes to recoup the dollars.

Federal Treasurer Jim Chalmers. Picture: NewsWire / Martin Ollman

The government is to blame

Shirley

Australia needs a PM with a no-nonsense approach. Make some hard calls, save some money, stop throwing tax payers money away to wars and crisis in other countries. Forget about the warm and fuzzy wishes for minority groups and concentrate on what affects every Australian. This would be a strong leader who won’t please everybody.

Ross

All workers are pushing labor governments for wage rises, forcing prices up again. Albo and Grim Jim are handing out pre-election sweeteners forcing real inflation to stay higher than the RBA would like and some tinkering with rates will make no real difference except at the margins. Giggles tried to buy an election in Qld and failed spectacularly. Let’s see what Albo tries this time. Hopefully voters will see through his populist polices and lack of leadership.

Canetoad Daz

A good article with a spot assessment. The sad and infuriating part is that all this extra revenue generated by this incompetent government is being wasted on with leftist, green WOKE nonsense.

Scrubbed out

The LNP government splashed cash like a drunk billionaire ten times over during the pandemic , job keeper handing millions to shop keepers who didn’t actually need any help in the long run but failed to have any clawback to recover virtually defrauded funds thanks to incompetent leaders at the time.

TERESA

Taxes have gone up too. All those extra public servants to be fed. Meanwhile the bottom half of the population see no meaningful relief. Still waiting for renewables to bring home the bacon and the promised lower electricity prices.

Anthony

Albo does not have a clue. Neither does Chalmers or any of their advisers. Be honest - chasing a (false) net zero was always going to cripple us financially. I love the comment that ‘solar and wind cost us nothing’!!!! How much per kw/h does a wind turbine costs or solar panels. Don’t forget the bloated land and rental costs. And the short time span or the replacement cost for hail damaged solar panels fields!!! Let’s then not forget his absolute waste of false promises and inefficient use of govt funds. Bloated public service that is far less efficient than 10 years ago. Albo - the worse PM in living history and that says a lot when you remember Kevin07 and Gillard!!

People need to learn to live within their means

Zee

$12 cup of coffee an everyday essential item? I don’t think so. People need to work out what is essential, not wanted & learn to live within their means.

noelod22

Would never pay even 10 bucks for a coffee. I simply don’t understand how people can claim they can’t afford basic groceries’ to feed the family and fuel their car. Seems that caffeine can fuel such cultural addiction.

DK

Australians could start trying to live within their means. When we bought our first home, there was no such thing as a store bought cup of coffee, or eating out apart from the occasional fish and chips. I look at all the people in the cafes and restaurants and often wonder about their priorities if they are really in a cost of living crisis?

Originally published as ‘Bad joke’: What you said about the Reserve Bank’s rate cut