Albanese's election options narrow as RBA rate cut hopes fade
Anthony Albanese may well have been expecting rate cuts to pave the way for his election run-in. But with inflation still running hot, economists are now bandying about the possibility of a rate rise instead.
Interest rates are likely to stay higher for longer. That is a headache for Anthony Albanese as he tries to determine the best date for an election.
Assuming a half-Senate election is held alongside the House of Representatives, as usual, the Prime Minister can call the election any time between 3 August 2024 and 17 May 2025.
At the beginning of this year, several economists and the markets were convinced the cost of living crisis would be running its course, with a possible interest rate cut by now.
This backed the conventional thinking at the time that Albanese would want to hold on for as many rate cuts as possible before facing voters at an election. But now, there is no guarantee of one rate cut by then, let alone several.
