Federal politics live: Government says RBA rate cut decision about ‘pace, not direction’

Shadow Treasurer Ted O’Brien is up and about this morning, also responding the RBA’s unexpected decision to keep rates on hold.

Speaking with ABC Radio Sydney, he said while millions of Australians were doing it tough, RBA governor Michele Bullock’s explanation behind the decision was “very logical”.

He said it would be “unwise” to be double-guessing the central bank: “I think their independence has to be treated as sacrosanct.”

O’Brien says the government must address productivity, through incentives for the private sector to invest domestically, measures to build Australia’s tech capability and increased flexibility.

Donald Trump has flagged a possible 200 per cent tariff on pharmaceuticals — one of Australia’s biggest exports to the US — but says manufacturers will be given time to move to America to dodge the tax.

The US president also said copper was likely to be hit with a 50 per cent tariff.

To date, pharmaceuticals and copper have both been exempt from the US’s ever-evolving tariffs regime, pending two separate investigations by the Department of Commerce.

But Trump has long railed against American dependence on foreign producers of the products, given the lifesaving nature of many imported medicines and copper’s importance to the industrial sector and technological innovation.

Millions of Australians have been left disappointed after the Reserve Bank held off on a widely expected interest rate cut for at least another month.

In a split decision, the RBA board voted to wait until the latest inflation data comes in to confirm they’re on the right track.

Housing Minister Clare O’Neil said while she was hoping for an interest rate decrease, the RBA was clear in its message.

“What the RBA told us yesterday is this is about pace, not direction. The RBA has already cut interest rates twice this year and kind of indicating that they want to keep moving on that but they’re being very cautious,” she told Sunrise.

Asked if she was frustrated by the decision, O’Neil said she was respectful of the central bank’s independence.

“I want my community and people around the country not to be struggling in the way that they are,” she said.

“Of course, I was hoping for an interest rate decrease from the Reserve Bank but we are very respectful of the independence of the institution.”

Hi friends. Welcome to our politics live blog.

I’m Courtney Gould, logging in from the ABC’s Parliament House bureau in Canberra, ready to bring you all the news as it comes in.

Let’s get bloggggginnnnnng!

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