As speculation of an election date announcement grows, Tuesday’s rate cut could prove to be a decisive moment for both sides.
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00:00The first rate cut in four long years is happy news for households and the federal government,
00:08which has been carrying a mountain of political baggage.
00:12It's spending blamed for making inflation worse at a cost of living crisis that has
00:16crunched living standards.
00:18Like the notorious 2007 Reserve Bank rate hike that dashed John Howard's campaign against
00:24Kevin Rudd, today's move may turn out to be just as politically decisive, perhaps again
00:30in Labor's favour.
00:32For one thing, it gives the government something new to talk about.
00:35The idea that the worst of the inflation crisis is behind us.
00:39But as the Treasurer says, it's too early to declare mission accomplished.
00:44The Reserve Bank pouring cold water on talk of immediate follow-up rate cuts.
00:49There's a risk this is one and done.
00:52The temptation for the Prime Minister will be to visit the Governor-General sooner than later.
00:57If there's not going to be another cut in early April or May, he might just want to
01:01go to an election before that becomes too obvious.