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Treasurer refuses to take rate cut as criticism of his economic policy

The Treasurer claims another cut in interest rates isn’t a criticism of his handling of the economy.

The Reserve Bank slashed interest rates to a record low of one per cent on Tuesday, its second cut in as many months.

With it came a warning from the RBA Governor that the country can’t just rely on monetary policy to boost the economy.

Treasurer Josh Frydenberg tells Steve Price proposed tax cuts, which have passed the lower house, are just one example of how the government is acting.

“The Reserve Bank actually believes we can get unemployment lower than where it is today at 5.2 per cent, and they can help do by reducing interest rates without causing inflationary concerns.

“So, combined with the infrastructure spending, our apprenticeships programs, what we’re doing on deregulations, it would all help keep the economy growing.”

Mr Frydenberg refused to accept that the Reserve Bank is acting to stimulate a stagnant economy.

“That’s actually not what they’ve been saying.

“The Australian economy shouldn’t be talked down by the Labor Party.”

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