Australia Raises Interest Rates for First Time in Over a Decade

    Image copyright: 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%.

    • 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.


    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.

    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.


    Metaculus Prediction


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