The timing of the election is proving to be a headache for the government beacause of the almost certainty the Reserve Bank will raise interest rates.
The decison, to be made on Melbourne Cup Day (Nov 6), will be the first time this has happened during an election.
But it need not have been that way. Howard has had plenty of time to call an election. Most would argue, too much time. We’ve been in campaign mode for months. He has gambled and lost, so it seems.
The rates rise will be a nice excuse if (as expected) the government falls. Maybe it was planned that way. Howard has probably known for ages that rising inflation will be his undoing and that timing it with a rates rise would be an exit strategy that absolves him from incompetence. Blame the bank.
What was that about the government being responsible for keeping interest rates low? Yeah, pull the other one, Johhny.