Responding to the Reserve Bank cutting the Official Cash Rate by 0.25 points, ACT Leader David Seymour says:

“Spending restraint is paying off. The Reserve Bank has just delivered its fifth interest rate cut running, and households will start to see mortgage rates beginning with a four.

“Firms, farms, and families will have more money left to pursue their own ambitions, and their spending will flow through the economy.

“Households deserve credit for improving economic conditions. They reined in their budgets during a cost-of-living crisis.

“Likewise, the Government has reined in its spending. Government spending growth is tracking at around 1% per annum – in real terms, that’s a spending cut once inflation at 2.2% and population growth at 1% are taken into account.

“By resisting the temptation to spend our way through our challenges like Labour did, we leave space in the economy for further mortgage relief, and more growth in the private sector. We need to stay the course.”

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