The Reserve Bank played it safe and didn’t cut interest rates in April – and households suffer

‘The RBA’s inaction was cruel because, when it comes to cost of living, interest rates are the major issue.’ Photograph: BeyondImages/Getty Images

The latest retail spending figures show that households continue to do it tough and that the Reserve Bank of Australia was wrong when it chose to keep rates steady in April.

Back in the first week of the election campaign, if you recall, the Reserve Bank monetary policy board met and decided to do nothing. Things were confusing, things were uncertain. Better to do nothing. Also, there was an election on – best not to look political, play it safe.