Reserve Bank of Australia considers interest rate rise

November 5, 2007

The Australian Prime Minister John Howard is bracing himself for the probable interest rate rise on Wednesday. Experts are saying that a rise is almost certain and that as many as three could occur within the next three months. Interest rates have never risen so close to a federal election (this year's election on November 24) but the Prime Minister says that some interest rate rise is unavoidable in a good economy.

"Now is not the time to replace an experienced government on economic issues with an inexperienced government," Howard warned today. Labor leader Kevin Rudd recalls the Prime Minister's promise at the 2004 election to keep interest rates low - labelled the 'big interest rate con' by the opposition leader.

Treasurer Peter Costello reaffirms the Coalition's policy on the workplace relations laws, saying that a reversal of the laws by a Labor government would push up inflation and interest rates.