Rates depend on CPI, not elections

The Reserve bank of Australia is prepared to raise interest rates in the middle of a federal election campaign said the governor of the RBA, Glenn Stevens, yesterday. The board of the RBA is next due to meet and discuss interest rate policy on August 3, three weeks before voters go to the polls to cast judgement on the government’s record on August 21.

Mr Stevens said the RBA would ‘consider all the issues for the economy and do its job. What else do people expect?’ The RBA board signalled on Monday that it was waiting to see the latest figures on inflation before deciding on rates. The CPI inflation data is released by the ABS next Wednesday.

Source: The Age