Opposition Blames Government as RBA Holds Rates, Warns on US Tariff Threats
Shadow Treasurer Ted O'Brien has blamed the Albanese government for the Reserve Bank's decision to hold interest rates steady, claiming average mortgage holders now pay $1,900 more annually than when Labor took office.
Speaking on Sky News AM Agenda, O'Brien said the RBA's latest decision to maintain rates rather than deliver an anticipated cut has "shocked many Australian homeowners" but argued responsibility lies with Prime Minister Anthony Albanese and Treasurer Jim Chalmers, not the central bank.
"The RBA's decision means that the average mortgage holder has to continue paying around about $1,900 extra in their interest payments than they were before the Albanese government came to office," O'Brien told host Julia Bradley.
The Liberal MP criticized government spending for keeping inflation high and poor productivity performance for limiting the RBA's options, echoing comments from Reserve Bank Governor Michelle Bullock.
"Interest rates in Australia have been too high for too long because of government spending, which has kept inflation high," O'Brien said. "As the Governor of the Reserve Bank has made clear, there's also been such a poor performance in productivity, it is limiting the options available to the bank."
The RBA board voted 6-3 to hold the cash rate at 4.35 percent during Tuesday's meeting, with three members favoring a cut. Governor Bullock cited international volatility and the need for quarterly inflation data as factors in the decision.
US Tariff Concerns Escalate
O'Brien raised alarm about potential 200 percent tariffs on Australian pharmaceutical exports, linking the threat to what he called inadequate leadership from the Prime Minister in managing the relationship with the United States.
"Recent news today that we might be seeing the United States slap a 200 percent tariff on our pharmaceutical exports is deeply concerning and again reinforces the need for the Prime Minister to meet the President face-to-face," O'Brien said.
The Shadow Treasurer criticized Albanese for not prioritizing the US relationship, saying threats to the pharmaceutical sector through tariffs have been discussed "for months now" without adequate government action.
"Any tariffs against the sector should be opposed. They fly in the face of the spirit of our relationship with the United States and our free trade agreement," O'Brien said. "Unless our Prime Minister himself is prepared to sit face-to-face and negotiate with the President of the United States, then we're always going to be negotiating with one arm tied behind our back."
When asked about potential negotiating strategies, O'Brien emphasized relationships over specific trade-offs, drawing on his pre-politics business background in international negotiations.
"Relationships come first. If you want to have an effective negotiation, then it has to be done between the Prime Minister and the President," he said. "The relationship between the Prime Minister of Australia and the United States President is absolutely key."
RBA Transparency Debate
O'Brien supported Governor Bullock's position against revealing individual board members' voting patterns, despite increased transparency showing the 6-3 split on Tuesday's decision.
"I think the Governor's right in that regard. I'm not concerned that there was some different views around the table of the RBA. That is as it should be," O'Brien said.
He warned against politicizing the central bank while maintaining his criticism should focus on the government's economic management rather than RBA decisions.
"We've got to be very careful that the RBA is not politicised. While we're all disappointed that interest rates aren't coming down sooner, really, the responsibility for why lies on the shoulders of Anthony Albanese and Jim Chalmers," O'Brien said.
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Economic Reform Roundtable Criticized
The Shadow Treasurer expressed skepticism about next month's economic reform roundtable, calling it a potential "very narrow talkfest" after the government ruled out certain policy areas.
"The Treasurer went out, announced we're going to have a roundtable on economic reform. Open-minded he will be. Non-ideological he will be. But now we find out that there are potential solutions around tax reform they will not consider," O'Brien said.
He confirmed his attendance at the roundtable while criticizing the government's approach to industrial relations and tax reform limitations.
O'Brien specifically targeted the government's proposed superannuation tax on unrealized capital gains, calling it "anti-aspiration, anti-productivity, anti-investment."
"If we want to improve productivity in this country, the one tax reform the government is looking at introducing, which is a tax on unrealised capital gains through a superannuation tax, should be dumped," he said. "This is about turning a savings mechanism for families into a tax grab for the Labor Party."
Liberal Party Candidate Selection
On internal party matters, O'Brien declined to specifically endorse US-style primaries proposed by some New South Wales Liberals to boost gender representation, instead emphasizing outcomes over mechanisms.
"My focus, like Susan Lee's focus, is on the outcome, and that is having more women come forward and represent the Liberal Party, represent their local communities," O'Brien said.
He expressed disappointment that "26, 27 female candidates who are absolutely first class" did not win seats at the last election, calling them representatives "who I wish were in the parliament with us in this term."
When pressed multiple times on whether he backed the US-style primary proposal, O'Brien maintained his position: "I'm not going to be backing any specific idea. I will work with Susan Lee to make sure that she as leader, me as deputy leader, is fostering healthy debate about how best we can get to the outcome."
The comments come as the Liberal Party faces ongoing discussions about candidate selection processes and gender representation following electoral setbacks. The party continues internal debates about balancing traditional selection methods with calls for greater diversity in parliamentary representation.
Governor Bullock's decision to hold rates steady disappointed many economists and homeowners who expected the first cut in the current cycle. The central bank has maintained rates at 4.35 percent as inflation remains above the target range, with international economic volatility adding complexity to monetary policy decisions.
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