The Reserve Bank, as expected, has thrown its wild card into the election campaign, but neither government nor opposition can be sure which side will be more damaged, or advantaged, by it.
Tuesday’s interest rate rise had been anticipated, was inevitable, and is the result substantially (though not entirely) of external forces. As to its timing: given the recent big inflation spike, the bank could not credibly have held off for another month.
Governor Philip Lowe made it clear the (independent) bank did not take into account any political considerations, in what is the first rise during a campaign since 2007, the election John Howard lost. “The election has no influence at all on today’s decision,” Lowe said.
