Families will welcome rate relief: Swan

Treasurer Wayne Swan says the Reserve Bank's decision to leave its official cash rate unchanged for another month will be welcomed by households and small businesses who are still "doing it tough".
But economists believe that an interest rate rise remains inevitable in the coming months due to the prospect of a sharply rebounding economy, and financial markets are pricing in the chance of a move before year-end.
The central bank left the cash rate at 4.75 per cent for a sixth board meeting in a row at Tuesday's monthly gathering of board members, as generally expected by economists.
"The board judged that the current mildly restrictive stance of monetary policy remained appropriate," Reserve Bank governor Glenn Stevens said in his post-meeting statement.
"In future meetings, the board will continue to assess carefully the evolving outlook for growth and inflation."
Mr Swan said the decision will be welcome relief for many families and small businesses doing it tough, with some parts of Australia's patchwork economy particularly struggling while others are doing well.
"The government is doing its bit by bringing the budget back to surplus in record time so we are not adding to price pressures," Mr Swan said in a statement.
The governor noted the impetus from earlier government spending programs is now abating, "as had been intended".
But opposition treasury spokesman Joe Hockey said the rate reprieve would only be momentary, unless the government claws back significantly on spending to take upward pressure off inflation and interest rates.
"This is a moment of respite for Australian families, but it is only that - a moment," Mr Hockey told reporters in Sydney.
Retailing and small business groups breathed a sigh of relief.
"Despite the strengthening economic outlook led by the resource sector, other parts of the domestic economy, such as manufacturing, retail, building, hospitality and tourism, continue to face much more subdued demand conditions," Australian Chamber of Commerce and Industry chief executive Peter Anderson said.
Mr Stevens said the weather-affected rise in the consumer price index (CPI) should fall back later in the year.
But he added that substantial rises in utilities prices are still occurring, while wage growth has returned to levels seen prior to a significant downturn in 2009.
The floods and cyclones over the summer also resulted in a sharp fall in economic growth in the March quarter, but "over the medium term, overall growth is likely to be at trend or higher".
Commonwealth Bank of Australia senior economist Michael Workman said the statement "bears great similarity" to the one in May.
"It appears that the board needs some more information before it will make the decision to lift rates," Mr Workman said.
He said the next two monthly labour force reports will be scrutinised to determine if the recent moderation in jobs growth is the new trend, or whether it is transitory.
May jobs data is released on Thursday.
And if underlying inflation is similar to the March quarter outcome of a 0.8 per cent increase when the June quarter CPI is released on July 27, "it would open the door for an August rate rise", Mr Workman said.