Australia’s Treasurer, Scott Morrison, has reportedly told the Australian Financial Review that he opposes further interest rate cuts on the basis that they have exhausted their effectiveness. He was speaking whilst in Washington to address central bank governors, finance ministers and investors.
The statement is unusual in that the Reserve Bank of Australia is set up to be independent of government. It makes its own decisions, free from political interference. The comments might be seen as trying to influence the RBA although the RBA has in the past noted that the effectiveness of cutting rates was diminishing as rates were cut.
The Treasurer also signalled that the government would need to do more with fiscal policy and reforms to boost productivity and to incomes.