Hi
Ok, this is my first opportunity to vote in Australia, as I recently became an Australian citizen after living here for 5 years.
My concern is that both major contenders are promoting low/lower interest rates, but does either have much if any control over them; I thought it was the RBA?????
Are they trying to buy me with empty promises????
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The RBA sets rates based on internal economic indicators (inflation etc). The economic indicators can fluctuate as a result of the effects of goverment policies.
So which party labour or liberal can provide economic stability so as the RBA doesnt have to lift rates
Also logically the RBA actually consults with the goverment before moving rates in either direction.
I havent seen any adds (dont watch much tv) promising “low/lower rates”. The only adds Ive seen says that rates will be higher under labor (liberal add) and labor add saying rates wont rise under them.
I don’t think it will matter to much short term.
Over the medium term they Might rise under Labor (because of larger spending promises in 2006 (MedicareGold) and because of their Industrial relations policy). This is drawing a long bow to try to link each party with higher interest rates.
More important influences are overseas as well as our domestic economic cycles.
Rgds.
Lucifer_auAt the end of the day i want another .5% rise in interest rates to liven things up a bit (from my side of the fence
.I would prefer this under a coalition goverment then i can be reasonably sure my tax rate wont be affected to pay for the promises.
Anyone remember when the business tax rate was “set in stone” ;-(
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