Media Release

"The fight inflation only policy continues with ridiculous interest rates causing very serious damage to all our industries", said Australian Party Leader Bob Katter today after questioning the Treasurer in the Australian Parliament.

During question time, the Federal Member for Kennedy asked Treasurer Wayne Swan to assure the Australian people that it would be "pointed out" to the Reserve Bank of Australia that its 4 per cent-plus rate was contrary to its charter.

"Section 10 of the Reserve Bank Act states that the RBA pursue policies that ‘best contribute to… the maintenance of full time employment in Australia and the economic prosperity… of the Australian people’," Mr Katter told the House of Representatives.

"In light of prevailing rate in the US of 0.13 per cent, Japan at 0.05 per cent, and the EU and Canada at 1 per cent, could (the Treasurer) assure the Australian people that it will be pointed out to the RBA that continuing with a 4 per cent-plus rate is contrary to their charter; and is a policy that has already driven the dollar from US60c eight years ago to US$1.10 today.

"In light of this and yesterday’s decision (to maintain the 4.25 per cent rate), which will price more Australian goods and services off the world market, would he not agree that a continuation of this ‘fight inflation only’ policy jeopardises hundreds of thousands of jobs in tourism, manufacturing, agriculture, retailing and base metal sectors?"

As part of the Australian Party’s policy to level the playing field, to ensure that our producers of real wealth get a fair go and are no longer handicapped, the Australian dollar will be devalued by reducing interest rates to bring them in line with the rest of the world.