Treasurer Jim Chalmers has warned Australians to steer clear of “DOGE-y Dutton” as he hails Labor’s progress in slowing inflation.

Speaking after the Reserve Bank of Australia left interest rates untouched at its only board meeting during the federal election campaign, Chalmers said the Albanese government’s policies were working.

“Inflation was much higher and rising at the last election. Now, it is much lower and falling. Inflation was higher than 6 per cent when we came to office, and it was rising fast. It peaked in 2022 – the year that we were elected. And now, it is a fraction of what we inherited from Peter Dutton’s Coalition,” he said.

“We know that cost of living is front of mind for many Australians, and it’s absolutely front and centre in the budget I handed down last week.

“It’s central to the big differences between the parties as well: Labor is helping with the cost of living, cutting income taxes for all 14 million Australian taxpayers, and strengthening Medicare at the same time. But a vote for Peter Dutton is a vote for higher taxes, for no ongoing cost-of-living help, and for secret cuts to pay for his nuclear reactors.”

Chalmers also seized on a Coalition plan to look at cuts to the federal education department.

“Today, he threatened cuts to school funding, which was right from the DOGE play book. And we also know that he wants to Americanise Medicare as well,” he said.

“This is DOGE-y Dutton, taking his cues and policies straight from the US.”

Tuesday’s decision by the RBA to deny borrowers back-to-back mortgage relief., which had been widely tipped by economists, leaves the cash rate steady at 4.1 per cent.

Opposition treasury spokesman Angus Taylor said the decision to hold rates underscored the reality there was no fast pathway out of the cost-of-living crisis.

“We know from Labor’s own numbers and from the Reserve Bank that we’re not getting back to where we were when [the Coalition was] last in power until the end of the decade. This will be a lost decade for Australians if Labor stays in power. That is their plan,” he said.

However, markets had priced in just a 10 per cent chance of a cut, despite the central bank kicking off a long-awaited rate easing cycle in February.

Hawkish commentary from governor Michele Bullock and other RBA officials – pouring cold water on market predictions for further cuts – had tempered expectations.

“The board is resolute in its determination to sustainably return inflation to target and will do what is necessary to achieve that outcome,” the board said in its post-meeting statement.

The board has reiterated its concerns that tightness in the labour market could risk keeping inflation higher for longer.

Later Bullock said the board did not “explicitly discuss” a rate cut on Tuesday.

“It did talk a little bit about downside risks and including the global downside risks. But it not discuss a rate cut,” she said.

“So far, the information since February indicates that things are on track and we felt that it was the right thing. It was a consensus decision.”

Inflation showed further signs of easing in monthly figures released last week, but the RBA will be looking for more proof of a sustainable return to its 2-3 per cent target band.

CoreLogic research director Tim Lawless said the outlook for interest rates remained positive – “with the cash rate likely to reduce further in 2025, but only gradually”.

“The quarterly inflation outcome, which will be released on April 30 ahead of the RBA’s next board meeting, will be a key factor influencing the RBA’s decision in May,” he said.

While the board was meeting earlier on Tuesday, the ABS reported retail sales grew at 0.2 per cent in February.

That was slightly below consensus expectations for a 0.3 per cent rise in spending, but further bolsters the case that household consumption was recovering, if only very gradually.

Head of business statistics Robert Ewing said food-related spending drove the rise, with household goods dropping for a second-straight month.

“Following promotion-based growth across the December quarter, spending on household goods continued to moderate with lower discretionary spending to begin the year,” Ewing said.

Oxford Economics Australia macroeconomic forecasting head Sean Langcake said the figures didn’t materially change the outlook for consumer spending.

But low unemployment and real wages growth bode well for future consumption.

“Last week’s federal budget also contained more support for households through extended utilities rebates and tax cuts, which further shores up the outlook if these policies are legislated,” he said.

-with AAP