Gillard claims credit for interest rate decision

Prime minister Julia Gillard has claimed that the Reserve Bank’s (RBA) decision to keep interest rates on hold this week is further proof of Labor’s strong economic management.

On Tuesday (August 3rd), the RBA kept the official cash rate on hold at 4.5 per cent for the third consecutive month.

Ms Gillard hailed the decision as welcome news for families and businesses ahead of the federal election and argued that when the global financial crisis hit, Labor made better economic choices than opposition leader Tony Abbott.

“On a day like this it brings into sharp relief the fact that economic management is at the centre of this election campaign,” she said.

“If we’d done what Mr Abbott had advocated then we’d be in a recession now.”

The prime minister argued her party would not make “deceptive and misleading” claims about the government’s ability to keep rates down because the RBA is independent.

“In the past we saw the Liberal Party go out and claim to Australians that they would keep interest rates at record lows and then we saw ten increases,” she said.

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