Howard’s interest rates claim refuted

Prime Minister John Howard has begun the federal election campaign claiming that interest rates will always be lower under a Coalition-led Federal Government. Analysts believe Howard's claim is unfounded and that interest rates are determined by an independent central bank, governed by inflation rates and other economic indicators. Stephen Koukoulas from TD Securities told the ABC's AM program that markets are not pricing in any extra rate increase because of the possibility of Labor being in government. The general consensus among analysts is that interest rates will rise in the near future regardless of which party is in power.