THE Reserve Bank has kept interest rates on hold, which is relief for homeowners and small business operators who have copped a dozen interest rate hikes under Labor.
But the rates on hold decision has come with more warning signals.
The Reserve Bank issued what was a very sober statement, and following the government’s budget, they have extended the timeframe it’s going to take to get back to the target level of inflation.
This is bad news for Forde families.
Inflation is stuck at a persistent level, around four per cent, and now the Reserve Bank is seeing that inflation staying higher for longer than its previous forecast.
Labor’s economic failures mean Australia and Australians are now fighting on two fronts: inflation and a deeply entrenched household recession.
This means that in the face of global economic uncertainty, economic and financial fragility is heightened in Australia.
Labor didn’t have a plan to beat inflation, and now we have an economy in trouble.
It’s clear that inflation is running the economy, not the government.
We haven’t seen any growth in gross domestic product per capita for five quarters.
Indeed, for four of those quarters, we’ve seen it going backwards.
We’re seeing a record level of insolvencies, and we’re seeing a renewed level of volatility and instability in economic and particularly in financial markets around the world, and here in Australia as well.
We are at the back of the pack of leading economies in terms of our economic growth – and back of the pack in dealing with inflation.
A coalition government will tackle inflation as an absolute priority.
We will do this by cutting wasteful spending, reducing red tape and delivering affordable energy.
We will also protect consumers and small businesses from corporations or union bosses who misuse their power.
The above is only set to worsen thanks to some new Albanese laws that have flown under the radar.
Family enterprises will be required by legislation to share management control of their business with newly appointed union delegates.
Local businesses I’ve spoken to of late are extremely concerned by this development.
Australians, and small businesses, really can’t afford three more years of Labor.
