The RBA should do the 'heavy lifting' to keep Australia afloat amid downgraded growth forecasts, Shadow Treasurer Joe Hockey has said.
News Ltd has reported that Hockey put the onus on the Reserve Bank to revive the economy should recent IMF forecasts of slowing growth come to fruition.
"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," Hockey reportedly said.
Hockey argued that the RBA has "tremendous capacity" to move on rates, and should use the measure to stimulate the economy before any government spending is implemented. He criticised the government's actions during the GFC, and contended that the Reserve should have cut rates further.
"It could have gone further, but it didn't because the government was spending so much money," he said.