Interest rate cut: Treasurer Joe Hockey urges Australians to spend

By James Massola
Updated May 8 2015 - 6:30pm, first published May 5 2015 - 4:57pm
Treasurer Joe Hockey: RBA and the federal government are in lock-step.  Photo: Andrew Meares
Treasurer Joe Hockey: RBA and the federal government are in lock-step. Photo: Andrew Meares
Treasurer Joe Hockey: RBA and the federal government are in lock-step.  Photo: Andrew Meares
Treasurer Joe Hockey: RBA and the federal government are in lock-step. Photo: Andrew Meares
Treasurer Joe Hockey: "You can't tax your way to prosperity." Photo: Andrew Meares
Treasurer Joe Hockey: "You can't tax your way to prosperity." Photo: Andrew Meares
Shadow treasurer Chris Bowen. Photo: Alex Ellinghausen
Shadow treasurer Chris Bowen. Photo: Alex Ellinghausen
Treasurer Joe Hockey: RBA and the federal government are in lock-step.  Photo: Andrew Meares
Treasurer Joe Hockey: RBA and the federal government are in lock-step. Photo: Andrew Meares
Treasurer Joe Hockey: RBA and the federal government are in lock-step.  Photo: Andrew Meares
Treasurer Joe Hockey: RBA and the federal government are in lock-step. Photo: Andrew Meares

Treasurer Joe Hockey has urged Australian households and businesses to borrow and invest money ahead of a "terrific" second budget, following the Reserve Bank's decision to cut the cash rate to a new record low of 2 per cent.