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Rates to play key role in election
Interest rates are expected to play a key role in determining which party will win the next election.
According to TD Securities, both parties understand that the economy looms large as a concern for voters.
As such, both Julia Gillard and Tony Abbott are currently sharpening their credentials as economic conservatives.
Last week, Mr Abbott told journalists that he would, if elected, keep rates low.
"I say that interest rates will always be lower under a coalition government because spending will always be less under a coalition government," Mr Abbott said.
"I can guarantee that we will take the upward pressure off interest rates."
However, TD Securities Annette Beacher said that was probably not the wisest choice of words for Tony Abbott.
Speaking to the ABC yesterday, Ms Beacher said the RBA is independent and any politician that assumes they can change this independence is “playing with fire”.
