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Reuters
Reuters
Business

Possible Australian rate hike puts cost of living in focus in election campaign

FILE PHOTO: Australian Prime Minister Scott Morrison speaks to the media at Melbourne Commonwealth Parliament Office, in Melbourne, Australia February 11, 2022. Darrian Traynor/Pool via REUTERS/File Photo

Australia's ruling coalition is bracing for a possible rise in interest rates on Tuesday right in the middle of a national election campaign that could further increase living costs and hamper Prime Minister Scott Morrison's re-election efforts.

The Reserve Bank of Australia (RBA) will decide later on Tuesday whether to lift official cash rates - for the first time in more than a decade - from record lows of 0.1% in a bid to tame inflation that surged at the fastest annual pace in two decades last quarter.

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