Politics Now A win for Labor as the RBA cuts rates
Aug 12, 2025
The RBA's recent decision to cut the cash rate by 25 basis points brings relief to mortgage holders, raising questions about Labor's political gains. The hosts dissect the political implications of this economic shift while reflecting on Australia's historic stance towards Palestinian statehood. They explore the complexities of the Israeli-Palestinian conflict and how political parties differ in their approaches. Additionally, they navigate the nuances of diplomacy regarding Gaza, all while weaving in light-hearted pop culture references.
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Labor's Long Fight Over Interest-Rate Image
- Patricia recounts Labor's long effort to escape the 'party of higher interest rates' reputation.
- She cites Mark Latham's pledge as an extreme example of past politics shaping present messaging.
Lower Rates Without Job Losses
- Patricia notes three cuts this year have coincided with unemployment below 5%.
- That supports Labor's claim of achieving a soft landing without major job losses.
Watch If Banks Pass On Cuts
- Watch whether banks fully pass the RBA rate cut onto borrowers.
- If banks withhold the full reduction, households will see smaller relief than expected.