Australian PM: Interest Rate Cut Won’t Affect Election Timing

Australian Prime Minister Anthony Albanese has stated that the Reserve Bank of Australia’s (RBA) decision to cut interest rates will not influence the timing of the upcoming general election.

Speaking on Tuesday night, Albanese told the Australian Broadcasting Corporation (ABC) radio that the rate cut would not impact his decision on setting an election date.

“This won’t have an impact on the timing of the election,” he said.

The RBA board on Tuesday announced a 25-basis-point reduction in the cash rate target to 4.1 percent, marking the first interest rate cut since November 2020.

Local media had speculated that the cut could prompt Albanese to call an early election for April 5 or 12. However, the election must take place by May 17. As prime minister, Albanese can visit the governor-general at any time to dissolve parliament and formally begin the election process.

Australian law requires a minimum of 33 days and a maximum of 58 days between the governor-general instructing the electoral commissioner to conduct an election and the actual voting day.

An April election would mean that Albanese’s Labor government would not be able to deliver the federal budget for 2025-26, which is scheduled for March 25, as parliament would already be dissolved.

Albanese emphasized that his government has been “working hard” on preparing the budget.

Speaking on Wednesday, Treasurer Jim Chalmers told ABC television that the government is still finalizing cost-of-living relief measures to be included in the budget.

Opinion polls suggest a tight race between the ruling Labor Party, in power since 2022, and the opposition Coalition of the Liberal and National parties.