CANBERRA, AAP – Inflation pressures are a global issue and not just limited to Australia, according to the prime minister.
Just days out from calling the election, Scott Morrison said there were multiple pressures on the national economy, in particular a looming rise in interest rates.
However, he told Melbourne radio station 3AW similar pressures were also happening in other countries.
“Inflation is running double in the United States what it is here in Australia, and significantly higher in the United Kingdom and in many other developed economies around the world,” he said.
“That’s why strong financial management in the years ahead is going to mean more than anything, and we’ve had a steady hand on those issues.”
Top Australian Brokers
It comes as the country’s big four banks have predicted interest rates will rise at least four times in the six months following the federal election.
While the Reserve Bank decided earlier this month to leave the official interest rate at 0.1 per cent, that rate is set to rise at future meetings.
The last time a rise in interest rates took place was in November 2010.
Opposition Leader Anthony Albanese said interest rates would likely rise regardless of the party claiming government at the May poll.
He said the prediction highlighted how cost of living would be one of the key issues for both parties heading into the election campaign.
“What it does emphasise is the need for a plan to take pressure off the cost of living, not just for the period of the election campaign,” he told reporters in Adelaide on Friday.
“We’re being very careful with our spending commitments, because we don’t want to place any inflationary pressure on the economy, but we have a plan for growth as well.”
Mr Morrison pledged the current government was better equipped to handle the rising cost of living in the lead up to the election.
“We know how to retain a AAA credit rating, we know how to grow the economy, and that’s been proven in one of the most difficult times that Australia has faced over the last three years,” he said.
“The pressures come from everywhere, and the issue is how you deal with them.”