The latest rate hike is ultimately to keep inflation incheck, and what one might just describe as the cost of Australia’s great economic success.
Therefore, additional rate hikes will almost certainly be needed. The only way to avoid a series of rate hikes is for the incoming government to aggressively trim its spending programs.
Whilst this should be the immediate priority for the new government, regardless of whether it’s in Coalition or Labor colours, moderate spending promises are more likely during the final stages of the election campaign. Simon Turner