Treasurer Chris Bowen says the latest central bank interest rate cut is good news for families and business.
The Reserve Bank of Australia lowered the official cash interest rate to 2.50 per cent, from 2.75 per cent, citing low inflation and the need to support domestic demand.
Mr Bowen said if passed on the by banks, the reduction meant a family with a $300,000 mortgage would pay $500 less a month, and $6000 less in annual payments, than when the coalition was last in office.
He rejected shadow treasurer Joe Hockey's comment that another cut would be an admission the economy was weakening.
"In elections past the coalition has gone to the Australian people with a solemn pledge that interest rates would always be lower under a coalition government," Mr Bowen said.
"Now all of a sudden, because interest rates are at record lows under a Labor government, we have Mr Hockey saying this is somehow a bad thing.
"How negative has this opposition become?"
Mr Bowen also took a shot at comments by Mr Hockey that adding up the cost of the coalition's policies was a "meaningless" exercise because Treasury's projections of the current fiscal situation were not credible.
The treasurer said it flew in the face of proper accountability.
"It's simply unacceptable for the opposition to be saying `We won't be adding up our policies'," Mr Bowen said.
"If the opposition is not prepared to submit all of its policies to the departments of Treasury and Finance ... then they cannot be regarded as credible economic managers."
