Rates rise heats up major parties' claims over economic management

Talk of interest rates has dominated the election campaign trail as both leaders argue their economic credentials. The Reserve Bank has lifted interest rates for the first time in 11 months, in a bid to curb inflation.

Australian Opposition Leader Anthony Source: AAP

The government’s pitch to voters on economic management just got harder to sell, as borrowing money just got more expensive.  For Australians already struggling with cost-of-living pressures, higher mortgage repayments will be an unwelcome development.  The cash rate now sits at 0.35 per cent, up from 0.1 per cent, but the Reserve Bank predicts it will go higher.