Central bank move in middle of poll campaign could further increase living costs
Sydney — Australian Prime Minister Scott Morrison was dealt an election knock on Tuesday after the country’s central bank raised rates in the middle of a tough campaign, which could further increase living costs and hamper his party’s prospects at the polls.
Morrison, trailing in polls ahead of a national election to be held on May 21, said Australians had been preparing for a hike in interest rates “for some time” but conceded the decision would be difficult for some. The hike in rates means millions of Australians will have to cough up more money on their mortgages for the first time since 2010. Cheap loans fuelled a housing boom last year, a windfall for household wealth and consumer confidence, but that has also raised affordability concerns.
The last time the RBA increased rates during an election campaign was in 2007, and then Prime Minister John Howard went on to lose both the vote and his seat.
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