Finance Minister Penny Wong denies government pressure on RBA to cut rates

Federal Finance Minister Penny Wong has denied that the Prime Minister is putting pressure on the Reserve Bank to cut rates, insisting that the government’s focus is returning Australia to surplus. 

Yesterday, Julia Gillard said that a budget surplus would give the RBA the opportunity to lower interest rates. 

Wong later said that Gillard wasn’t trying to “heavy” the central bank into cutting rates. 

Economist Christopher Joye said yeseterday that the Prime Minister's speech was an attempt to politicise the RBA. 

This article originally appeared on StartupSmart.