Treasurer Joe Hockey says the latest interest rate cut by the Reserve Bank will help stimulate the economy and create more jobs.
The RBA cut the official cash rate by 25 basis points to a fresh all-time low of two per cent on Tuesday.
"Now is the time to borrow and invest ... invest in the things that help to create jobs," Mr Hockey told reporters in Canberra.
Mr Hockey said there were many green shoots in the economy.
"This interest rate cut will help to facilitate those green shoots," he said.
"It's as much about putting fertiliser on the green shoots as anything else."
He said the budget to be delivered next Tuesday would further boost the economy with a record spend on infrastructure and a small business package.
"I would say to the business community, `go out and invest and create more jobs'," he said.
"We will do everything we can to facilitate that sort of investment."
Share
