The Reserve Bank has delivered the expected modest rate cut of a quarter of a percentage point, and we’re set for the predictable frenzy of speculation about an April election.
The cut is unlikely to be a major vote changer, after 13 increases. But it was absolutely vital to the government. Labor would have suffered a big knock if Michele Bullock and her board had held out.
The cut underpins the narrative of things improving, and may put voters in a better mood. At least that’s the government’s thinking.
