‘bad news’ for Coalition, says Uhlmann
Posted On May 3, 2022
The Coalition government could suffer at the polls following today’s interest rate increase, says Nine political editor Chris Uhlmann.
The RBA has increased the nation’s official cash rate for the first time in more than 11 years, up 25 basis points from 0.10 per cent to 0.35 per cent.
“It’s bad news for the coalition in an election,” he said.
Uhlmann said the only other time interest rates increased during an election campaign was in 2007, when incumbent Prime Minister John Howard lost to Labor’s Kevin Rudd.
“John Howard always promised that interest rates would be lower under the government that he led,” said Uhlmann.
“But at that stage we were going from 6.5 per cent to 6.75 per cent.
“It’s a much different interest rate story from then and now.”
An average owner-occupier with a $500,000 debt and 25 years remaining on their mortgage will now see repayments rise by $39.
Three million Australians have mortgages, so today’s decision by the RBA has far-reaching financial consequences.
Just weeks out from the election, there could be political ramifications with the Prime Minister distancing himself today from the RBA’s decision.
Uhlmann said today’s hike is a “recipe for inflation”.
“When you’ve got a cash rate at near zero, you’ve got almost full unemployment, that is going to feed into the prices that you are seeing.
“We are coming off the back of emergency levels.”
Uhlmann said the PM will be even more concerned about the price of a mortgage.
“Does he get punished for this?
“Do people hold him responsible for things which are really beyond his control?
“Certainly, the Labor Party is holding him responsible.”