The ACTU says the Reserve Bank's decision to cut interest rates will be good for jobs and families.
ACTU president Ged Kearney said the rate cut would be a huge relief to lots of households and businesses.
"It will mean that families struggling with the cost of living at the moment will be able to cope just that little bit better with their mortgage repayments," Ms Kearney told reporters in Melbourne.
"They will have more money to put back in our economy."
This would create stimulus, she said.
"Business will be able to expand, perhaps and create more jobs," Ms Kearney said.
She dismissed Shadow Treasurer Joe Hockey's statement that a decline in interest rates would be because the economy is struggling, not because it's doing well.
"The low interest rates are an indication of an economy in transition," Ms Kearney said.
"We are seeing the mining boom slow down. The Reserve Bank is taking the right decision to help us through that adjustment."
She said the Reserve Bank's decision to ease pressure of families and businesses needed to be coupled with political commitments that supported jobs.
"That's why investment in infrastructure, commitment to local content targets and support for the industry is so important," she said.
