Opposition calls on RBA to cut interest rates

Opposition finance spokesperson Andrew Robb has asserted that the Reserve Bank of Australia (RBA) should reduce interest rates.

He told ABC Radio that there is likely to be more weakness in global markets and that the appropriate response is to reduce the cash rate from its current level of 4.75 per cent, reports the Australian Associated Press.

The expert asserted that the economy was "in good shape", but suggested that the second and third government stimulus packages left the nation "highly vulnerable in the face of any further serious downturns worldwide".

"I think there is a case for the Reserve Bank to now start to cut interest rates because the economy is already starting to tank in various areas," Mr Robb stated.

However, finance minister Penny Wong asserted that the country's public finances are still "very strong", adding that there is a low level of debt and unemployment compared to the rest of the world.

Last week, Westpac chief economist Bill Evans called on the government to reduce interest rates, saying it was time to "ease financial conditions".

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