Negotiations over reforms to the Reserve Bank of Australia this week took an unprecedented turn when the Greens demanded the government use its reserve powers to immediately cut interest rates.
Labor had initially hoped to pass the reforms with the support of the Coalition. However, after a year of negotiations, they decided against it. Labor’s attempts to salvage the reforms by negotiating with the Greens now seem doomed to failure.
The Greens’ proposal that the government immediately cut interest rates might sound attractive, especially to the millions of mortgage holders struggling to service loans amid a cost-of-living crisis.
