Home Interest rate ‘bad news’ for the Coalition, says Uhlmann

‘bad news’ for the Coalition, says Uhlmann

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The coalition government could suffer at the polls from today’s interest rate hike, says Nine’s political editor Chris Uhlman.
the RBA raised the country’s official exchange rate for the first time in more than 11 years, rising 25 basis points from 0.10% to 0.35%.

“This is bad news for the coalition in an election,” he said.

The RBA raised the country’s official exchange rate during an election. (9News)

Uhlmann said the only other time interest rates had risen during an election campaign was in 2007, when incumbent Prime Minister John Howard lost to Labour’s Kevin Rudd.

“John Howard always promised that interest rates would be lower under the government he led,” Uhlmann said.

“But at this point we were going from 6.5% to 6.75%.

“It’s a very different interest rate story from then and now.”

An average homeowner with $500,000 in debt and 25 years remaining on their mortgage will now see their repayments increase by $39.

Three million Australians have mortgages, so today’s decision by the RBA has far-reaching financial consequences.

Nine political editor Chris Uhlmann. (A current affair)

With the election just weeks away, there could be political ramifications, with the prime minister today distancing himself from the RBA’s decision.

Uhlmann said today’s rise is a “recipe for inflation.”

Nine political editor Chris Uhlmann said he was fascinated by Prime Minister Scott Morrison wandering around lettuce and pumpkins today.
Nine political editor Chris Uhlmann said he was fascinated by Prime Minister Scott Morrison wandering around lettuce and pumpkins today. (9News)

“When you have a near-zero cash rate, you have almost complete unemployment, that is going to fuel the prices you see.

“We’re getting out of emergency levels.”

Uhlmann said the Prime Minister would be even more concerned about the price of a mortgage.

“Is he being punished for this?”

“Do people hold him responsible for things that are really beyond his control?

“Certainly the Labor Party holds him responsible.”