Interest rate rise

October 24, 2007, 7:43pm,  196 views

An interest rate rise in November would be the death knell of the Coalition. Howard’s chances are already looking grim, but that would be the last nail.

Economists believe there should be a rise, but the Reserve Bank has traditionally been reticent to change rates during election campaigns.

The current governor Glenn Stevens signalled a possible change in attitude earlier this year:

“If it is clear that something needs to be done, I do not know what explanation we could offer the Australian public for not doing it, regardless of when the election might be due.”

Such a move now would give Kevin Rudd the keys to The Lodge.