An interest rate cut by the independent Reserve Bank would "torpedo" the Morrison government's claims of its economic management, shadow finance minister Jim Chalmers says.
The central bank will hold its monthly board meeting on Tuesday, where financial markets are anticipating it could cut the cash rate to 1.25 per cent from 1.5 per cent, the first reduction since August 2016.
This would follow last month's unexpectedly weak inflation report, and other data showing the economy is slowing, house prices showing the biggest drop since the global financial crisis and demand for workers coming off the boil.
"If we do get an interest rate cut on Tuesday, as some are expecting, that will torpedo the government's economic management credentials," Dr Chalmers told Sky News on Sunday ahead of Labor's campaign launch in Brisbane.
"If they were doing a good job of it the Reserve Bank wouldn't be contemplating cutting rates."
Dr Chalmers also pointed to flat-lining productivity, stagnant wages growth, family savings are being run down, debt more than doubling.
He said an interest rate cut would expose the biggest lie of this campaign.
"The biggest lie of this campaign is that Morrison and the LNP have done a good job managing the economy."
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