Like all borrowers, The Australia Institute welcomes the 0.25% cut in the official cash rate. It should have happened months ago.
History tells us that interest rate cuts never happen as a one-off.
Whether or not we are in an election campaign, even if we're just days out from an election, on April 1, the RBA should cut again.
"To suggest there should be no cut in April because it would appear political is absurd," said Greg Jericho, Chief Economist at The Australia Institute.
"Treasurer Jim Chalmers constantly reminds us the Reserve Bank is independent of government.
"A rate cut in April would have nothing to do with politics. In fact, it would be political not to cut just because we are in an election campaign.
"Home owners should not be denied the next cut because of politics. It should be a purely economic decision.
"Today, the RBA has finally recognised that with inflation in the bottom half of its target range, with wage growth slowing and unemployment remaining steady and with the government subsidising energy prices to keep inflation down that the time has come to cut rates.
"The 25 basis point cut will save households around $100 a month on a $600,000 loan. It is small but necessary drop that has been long overdue but it better late than never."
"Even after this rate cut, interest rates are still restrictive. With the economy stalling and inflation now in the target band, the RBA needs to continue to cut rates, so they are no longer slowing the economy," said Matt Grudnoff, Senior Economist at The Australia Institute.
