Prime Minister’s response to pointed question after interest rates rise
Posted On May 3, 2022
The RBA today increased the cash rate by 25 basis points, which marked the first rate rise in more than a decade, sparking a number of questions for Scott Morrison about the impact this will have on his Federal election campaign.
A reporter asked Mr Morrison if his government has lost this election due to the hikes.
Mr Morrison scoffed and said: “of course not”.
“What today is about is what Australians are seeing as a result of the economy coming out of the pandemic,” he said.
Labor has taken the news of the interest rate rise as an opportunity to further needle the Coalition.
“It was hard enough to make ends meet in Australia on Scott Morrison’s watch and today it got even harder,” shadow treasurer Jim Chalmers said.
The last time the RBA increased interest rates during a federal election campaign was in 2007 when opposition leader Kevin Rudd was contesting incumbent Prime Minister John Howard.
Mr Howard’s Coalition government lost the election by a landslide a few weeks later.
At the time, Mr Howard apologised for the rate rise’s impact on mortgage holders.
“I’m sorry about that and I regret the additional burden,” Mr Horward said in 2007.
Today, Mr Morrison was also quizzed on whether he was sympathetic towards mortgage holders.
He responded: “of course, I have sympathy with that”.
“We expressed our concern about that with what we did in this year’s budget.”