Shadow treasurer calls on RBA to cut interest rates

Shadow treasurer Joe Hockey has called on the Reserve Bank of Australia to reduce the cash rate from its current 4.75 per cent level.

The central bank's board is due to meet on November 1st, on which day it will announce whether there will be any change.

Commenting after the International Monetary Fund stated that countries such as Australia need to bring their budget deficits under control, Mr Hockey said the government will not receive a "get out of jail free card", reports the Australian Associated Press.

He suggested that with unemployment at 5.2 per cent and the country enjoying the best terms of trade in 140 years, the government should be running surpluses.

Mr Hockey said one way to stimulate the economy is "an easing of cash rates by the Reserve Bank".

Last month, the Australian Chamber of Commerce and Industry said a reduction in the cash rate would boost business conditions in the country.

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