Former Labor treasurer Wayne Swan forced to defend tirade against Reserve Bank over interest rates

Former Labor treasurer Wayne Swan has doubled down on his extraordinary attack on the Reserve Bank of Australia, calling it a “truth serum” as he dialled up calls for a rate cut.

Mr Swan — who is now ALP national president — launched the tirade against the central bank earlier this month, accusing governor Michelle Bullock and her board of putting “economic dogma over rational decision-making” and “simply punching itself in the face” after 13 interest rate hikes.

The comments went much further than his former staffer and now Treasurer Jim Chalmers’ claim that the RBA was “smashing the economy”.

Asked on Friday if he stood by the comments, Mr Swan said: “It was truth serum, actually”.

Mr Swan suggested this week’s decision from the US Federal Reserve to cut rates for the first time in four years strengthened the case for the Reserve Bank board to follow suit.

That put him again at odds with Dr Chalmers and Prime Minister Anthony Albanese, who sought to temper expectations of a rate cut immediately after the Fed’s call.

The RBA board will meet on Tuesday to consider the cash rate, which sits at 4.35 per cent.

“I think that the decision in the US gives the Reserve Bank more room to move,” Mr Swan told breakfast television.

“I think the employment numbers yesterday weren’t exceptionally strong, and I think that everything is heading in the right direction for a rate cut.

“That would be my assessment of where the economy is, whether that’s shared by the Reserve Bank, I don’t know.”