Prime Minister Malcolm Turnbull has cited the Reserve Bank's decision to cut the official interest rate as support for his government's plan to transition the economy from the mining boom.
Mr Turnbull read from Governor Glenn Stevens' reasons for an historic 25-basis-point reduction during question time, just hours before the release of the federal budget.
"The governor's remarks underline the risk posed by the opposition to that successful transition (from the mining-construction boom)," he said on Tuesday.
Labor believes the decision to cut the rate from 2.5 per cent to 1.75 per cent is a reflection of the government's poor economic management.
"So while low interest rates are welcome, now is not the most exciting time for hard working Australians who can't get a decent wage rise and can't afford a house," shadow treasurer Chris Bowen said in a statement.
He cited previous claims by the coalition that a rate of 2.5 per cent was a sign of economic weakness.
