Mortgage holders have “worked hard” for the benefits of an interest rate cut after almost five years without a reduction, the prime minister says.

But Anthony Albanese has batted away suggestions the Reserve Bank’s decision to cut interest rates by 25 basis points to 4.1 per cent had cleared a path to an early election.

The lowering of rates will result in a monthly saving of about $80 for those with a $500,000 mortgage, and the prime minister welcomed the hip-pocket boost for homeowners.

“People are still under financial pressure, but Australians have worked hard for this outcome, and Australians deserve praise and support for what they have done,” he told reporters in Sydney on Wednesday.

“These have been difficult times. Australians had to endure COVID and then the impact of global inflation. But what we are seeing is that we’re heading in the right direction.”

The prime minister dismissed suggestions he would be making a trip the Government House to call the election.

While there had been speculation a rate cut could trigger an election for late March or early April, Treasurer Jim Chalmers said preparations were still being made for a federal budget, slated to be handed down on March 25.

“My job is to obsess over what’s happening in the economy, the prime minister will work out the election date – it will be at some point in the next three months,” he told the Today show on Wednesday.

“We know that people are still under pressure, and that’s why, if we can do more in a responsible way of course, we will consider doing more.”

The RBA is due to hand down another rates decision at the beginning of April, but governor Michele Bullock has all but ruled out another cut before the election as the central bank would need to assess quarterly inflation data, which won’t be published before its next meeting.

For many households, the rate cut has been “too little, too late”, shadow treasurer Angus Taylor said.

“Australian families have had to cut back on their spending, take on extra jobs, in some cases, extra hours to make ends meet,” he told Sky News.

“The hard work is being done by households when the hard work should have been done by the government.”

But the prime minister took aim at the coalition, saying the opposition had been downcast at the rate cut.

“Angus Taylor looked like someone had run over his cat in the driveway yesterday. He looked so disappointed,” Mr Albanese said.

“It’s the interests of families … that we have that positive approach towards Australia’s future.”

Mr Albanese is hoping to court voters with both his economic record and his personal life, spruiking his wedding plans in the post-rates decision glow as Women’s Weekly published a photo collection of the soon-to-be married couple.

He confirmed his nuptials would take place in the second half of the year, after an election.

Kat Wong and Andrew Brown
(Australian Associated Press)