ACOSS is deeply disappointed by today's decision by the Reserve Bank of Australia to leave interest rates on hold, saying there is a missed crucial opportunity to deliver relief to millions of people doing it tough.
"Today's decision is a blow for millions of people in Australia on low and modest incomes who are struggling to cover the basics," ACOSS Acting CEO Jacqueline Phillips said.
"It means that it will take longer to restore growth in jobs and wages after a decade of stagnation.
"With inflation now well within the target range, there is no justification for keeping rates at punishingly high levels. Economic conditions clearly support rate reductions and the RBA's inaction today means people will continue to struggle.
"Low unemployment is not causing inflation and should be celebrated. With job vacancies declining, unemployment will rise further unless interest rates are reduced. The longer rates remain high, the greater the risk that unemployment will rise and more households will be pushed to the brink."
ACOSS says the government also has a role to play in providing relief and reducing financial pressure beyond decisions taken by the RBA.
"We need effective action to lift incomes and ease cost pressures for struggling households," Ms Phillips said.
"We are calling for an urgent increase to social security payments to lift the incomes of those with the least, as well as further investment in social housing and home energy upgrades for low-income homes to improve housing affordability and lower energy bills."
