Treasurer Jim Chalmers says rate hold will disappoint Aussie households
The central bank defied widely held market expectations that it would cut the 3.85 per cent cash rate by 25 basis points, and instead held the rate steady.
Ahead of speaking to reporters at 3pm, the Treasurer said people would be disappointed.
'It's not the result millions of Australians were hoping for or what the market was expecting,' he said.
He also acknowledged households were doing it tough, and said the government's 'job's not done because people are still under pressure'.
'We recognise that people are still under pressure and there's more work to do in our economy and that's why the cost-of-living relief that we're rolling out right now is so important,' he said.
'The global economy is uncertain and unpredictable but the progress we've made together means we're well placed and well prepared to weather the storm.'
Speaking ahead of the decision, Sussan Ley hoped a cut would give homeowners some relief and urged the banks to act swiftly.
'I hope that ordinary Australians can see some pressure coming off the cost of their mortgage, and so I hope for the community that interest rates go down,' the Opposition Leader said.
'And I would certainly say to the banks, please pass these interest rate cuts on in full as soon as possible, because inflation is still high, costs are still rising, and families are still struggling with the cost of living.'
A 25 basis point cut would have saved Australians with an average $500,000 mortgage about $80 a month, or $956 a year, according to Finder.
A household with a $750,000 mortgage would save $120 a month, or an average annual saving of $1435.
Speaking to reporters in Hobart on Tuesday morning, Anthony Albanese declined to comment on the expected cut.
'The RBA is independent and I await the decision, as do other Australians,' the Prime Minister said.
More to come
Originally published as Treasurer Jim Chalmers says rate hold will disappoint Aussie households
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