Interest rate cut adds heat to election timing talk
Today’s RBA rates decision was one of the most anticipated in years — especially by political strategists in Canberra.
Rarely has a Reserve Bank rates decision carried so many implications for an upcoming election.
The prevailing wisdom is that Labor wants to avoid recalling parliament for another budget, effectively ruling out a May election. There were clear signals that Thursday was the last sitting day of this parliament.
Tuesday’s rate cut, the first after 13 rises, may now shape the rapidly narrowing window in which the government can call an election, which must be held by 17 May.
Welcoming the “rate relief that Australians need and deserve,” Treasurer Jim Chalmers insisted he was still preparing to deliver a budget.
