Scott Morrison has used the spike in US interest rates and other global economic pressures to argue that now is not the time to change government in Australia.
The US Federal Reserve raised its key interest rate by 0.5 per cent on Wednesday, the biggest hike in 22 years as it battles a massive inflation problem.
Financial markets are ready for a similar move in June.
The Reserve Bank of Australia raised its cash rate to 0.35 per cent from a record low 0.1 per cent this week, with governor Philip Lowe warning of further hikes.
The prime minister has been defending his government’s credentials in the face of sharply rising inflation, arguing interest rates will always be lower under a coalition government.
Mr Morrison insists Australia is enduring global pressures, noting US rates are now up 75 basis points, as they are in Canada, and are up five times the rate in New Zealand as they are in Australia.
“These pressures are real,” Mr Morrison told ABC radio on Thursday.
“And the last thing Australia needs is a Labor Party that doesn’t know how to manage money and a cavalcade of independents which will just create instability and chaos in the parliament.”
Labor leader Anthony Albanese will tell a business forum Australia is unprepared for the triple whammy of rising inflation, falling real wages and interest rate increases.
“This means Australia needs investments that ease the cost of living for families, help more Australians into work and into higher paid jobs, and grow the economy without adding to inflation,” he will tell the Australian Chamber of Commerce and Industry.
A Labor government would boost wages through productivity, invest in skills skills and training, revitalise domestic manufacturing, while promoting women’s economic opportunity and universal child care, Mr Albanese said.
Labor’s climate change action plan would also create jobs, attracts investments, reduces costs for existing businesses, and boosts new and emerging industries.
New figures due to be released by the Australia Bureau of Statistics are expected to see the recent volatility in building approvals having continued in March.
Economists’ forecasts point to a 15 per cent decline in dwelling approvals for March.
This would follow a 27 per cent slump in January when the Omicron COVID-19 variant hit council offices and slowed the approval process, only for approvals to rebound by a massive 43.5 per cent in February.
The ABS will also release international trade figures for March.
Economists expect the monthly trade surplus to widen to $8.2 billion in March after shrinking to $7.5 billion in February due to a 12 per cent surge in imports.
Westpac economists, who are forecasting a $10.7 billion surplus, are expecting imports to pull back by 4.5 per cent in March, while exports are predicted to rise by 2.9 per cent, led by coal.
