The Reserve Bank of Australia has lifted interest rates to an 11-year high of 6.75 per cent.
My question is: if the economy is going so well and both parties are suggesting that they are experts at managing the economy and keeping interest rates low, why are they both making huge election promises?
Answer: it wins votes.
But surely the Labor party could gain some ground on the question of their ability to run the economy, by ‘spending’ less on tax cuts and suggesting that the Liberal party’s sweeteners are economically irresponsible. Dah!
Meanwhile, I saw the interview John Howard did on 9am with David and Kim last week. This discussion was more influential than any other thing I have seen in the past year – even more so than a couple of Lateline interviews I’ve seen and the debate. If you like Howard, I would be spreading this one around!