The federal opposition believes the Reserve Bank and not the government, should do much of the heavy lifting if the local economy needs a boost in the face of a souring global economy.
An International Monetary Fund briefing note shows Australia won't miss out in a new round of global economic growth downgrades, with the agency now forecasting three per cent growth in 2012, down from the 3.3 per cent forecast in September.
Opposition treasury spokesman Joe Hockey has told Melbourne Talkback Radio he believes the RBA has the capacity to do much of the initial heavy lifting and to stimulate economic growth by reducing interest rates.
He says because the government overreacted during the global financial crisis and spent too much money, the central bank can only cut the cash rate to three per cent.
