Australia Raises Interest Rates for First Time in Over a Decade

MAY 3 2022·Updated AUG 11 2022

Story

Image credit: AP Photo

The Facts

The Reserve Bank of Australia (RBA) on Tues. raised the benchmark interest rate to 0.35%, up from a record low of 0.1%., after Australia's annual rate of inflation hit 5.1%.
Al Jazeera
This is the first rate hike in more than a decade as Australia tries to bring long-term inflation back to its 2-3% target, an effort that the RBA signaled will require further rises.
wsj
An increase was widely expected after consumer price inflation spiked in the March quarter, climbing to the highest level in more than two decades. However, the increase was 10 basis points larger than the expected 0.15 rise.
guardian
The effects of the RBA's decision may influence the result of Australia's federal election on May 21, and threaten the re-election hopes of PM Scott Morrison.
Daily Mail
The last time rates rose during an election campaign was in 2007, which was seen to negatively impact John Howard before he lost government.
BBC News

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Morrison has been unable to deal with economic challenges, leading Australia to a cost of living crisis. While he and his cabinet keep denying their responsibility, this rate hike joins the deterioration of real wages and skyrocketing inflation, destroying Morrison's credibility.

The Canberra Times

Narrative B

It's illogical to blame Morrison for an economic decision made independently by the RBA. The decision to bring interest rates back to normal levels was predictable as the pandemic rates can't last forever. This is not an indication of economic mismanagement.