Howard slams Reserve Bank for breaking interest rate election promise

The PM slammed the RBA for winning a fourth term in control of Australia’s monetary policy by pandering to voters with the slogan “Keeping interest rates low”, and then brazenly going back on its promise only a few short months after its election victory.

The Reserve Bank has shamefully abandoned its pre-election promise not to raise interest rates, Prime Minister John Howard said today. The PM slammed the RBA for winning a fourth term in control of Australia’s monetary policy by pandering to voters with the slogan “Keeping interest rates low”, and then brazenly going back on its promise only a few short months after its election victory.

Howard accused the RBA of becoming improperly involved in politics. “The Bank knows full well it operates independently of the Government, and yet it tries to make us look bad by blaming us for raising interest rates,” he said.

“In fact, the Bank has raised interest rates almost as much as Labor did during their 13 years in office.”

Kim Beazley was unsure whether he should attack Howard for having campaigned on interest rates when they are not set by the Government or for causing the rate rises which will hurt homeowners, opting eventually to do neither.

Howard has also criticised the Reserve Bank for reversing its pre-election promise not to send additional troops to Iraq.