Reserve Bank 'should do most of heavy lifting to help economy'

The Reserve Bank of Australia (RBA) needs to do "most of the heavy lifting" if the country's economy is to flourish.

Speaking to Melbourne Talkback Radio, opposition treasury spokesman Joe Hockey said the RBA needs to take the lead and make cuts to interest rates in order to stimulate growth.

His comments come after the International Monetary Fund revised down its predictions for Australia's gross domestic product output from 3.3 per cent to three per cent.

Mr Hockey stated that despite recent readjustments in November and December, interest rates across the nation are still generally higher than many other countries around the world and this needs to be addressed.

"I think the Reserve Bank has the capacity to do much of the initial heavy lifting and to stimulate economic growth by reducing interest rates," he told the broadcaster.

Earlier this week, the Australian Associated Press reported that the  Australian Chamber of Commerce and Industry urged banks to pass on interest rates to businesses as a matter of urgency.ADNFCR-1761-ID-801276972-ADNFCR