Australia Election 2022 Updates: In Australia, voters will go to the polls on Saturday with rising costs on their minds. The cost of living in Australia has reached a 21-year high, with an inflation rate of 5.1 percent. Wage growth is only 2.3 percent, implying that inflation is taking money out of people’s pockets every month.
People are concerned about rising rent, food, fuel, and other necessities. People are demanding for a government that will address inflation worries, but perspectives range on how much the new government will be able to accomplish. Economies all throughout the world are being impacted by rising global costs and energy shortages.
FOR THE FIRST TIME IN ALMOST 11 YEARS, AUSTRALIA’S RESERVE BANK LIFTED INTEREST RATES BY.25 PERCENT TO.35 PERCENT.
In the coming months, rate hikes are projected to continue. Summer Hamze, meantime, is organising deliveries at her busy grocery store on the main street. Many of her clients, she says, are struggling to keep up with the price hikes she’s been compelled to pass on from her suppliers. “With inflation, we do need the government to get control of it because it is out of control” .
“It’s only getting higher and higher, and people are really worried these days.” Given that market dynamics like as rising global shipping and energy prices drive inflation, Lakemba residents are divided on how much the future administration can do. “It’s in their hands,” one man argues, “since they know all the economic issues.” “So they’re prepared to deal with the circumstance.”
Another passer-by, though, disagreed. He answers, “No, I don’t think anyone can do anything.” “I don’t think anything will happen even if they change the administration because the banks will do their thing.” The Reserve Bank of Australia (RBA) raised interest rates for the first time in more than 11 years earlier this month (from 0.25 percent to 0.35 percent), the first boost in the middle of an election campaign since 2007.
DURING THE COVID-19 EPIDEMIC, RATES WERE KEPT AT HISTORIC LOWS TO ENCOURAGE AUSTRALIANS TO KEEP SPENDING.
However, as inflation rises and the post-Covid economic rebound begins, the RBA is putting the brakes on to prevent the economy from overheating. It raises the cost of borrowing money. In the coming months, more interest rate hikes are likely.
This is wonderful news for savers, but 300,000 Australians are expected to default on their mortgages as repayments rise. As a result, whoever wins the election this weekend will have to navigate rough economic waters. The prime minister, Scott Morrison, has slammed his main opponent, opposition candidate Anthony Albanese, as a “loose unit” on the economy. His centre-right coalition has been in power for almost a decade.
“It’s as if he unzips his cranium and everything falls to the floor. That is not the way to operate a business “Mr Morrison boomed. According to a recent poll, nearly two-thirds of Australians believe that lowering the cost of living should be the top priority for the next administration. Rising prices were “high on the minds” of many voters of diverse political persuasions, according to Professor Nicholas Biddle of the Australian National University (ANU).
“ALL OTHER KEY POLICY CONSIDERATIONS PALE IN COMPARISON,” HE SAYS.
“We discovered that those who indicated they would vote for Labor, people who said they would vote for (Scott Morrison’s) Coalition, and those who said they weren’t planning on voting for either party supported this opinion.” “One of Australia’s issues is that it has short parliaments, which means it is nearly always in the process of gathering votes.”
“When a government is preoccupied with the political cycle, when do they have time to knuckle down and get things done?” asks Michelle Baddeley, an economics professor at the University of Technology in Sydney. “I believe they are claiming more ground than they can actually manage,” she says.
“The reality is a bit of a mix because, as Covid so eloquently demonstrated, governments can do a lot in terms of spending money to create jobs in the near term.” “Australia will fare better economically than most other countries after Covid. So you don’t want to pass up this chance, do you? “he adds. Voters in Australia will soon chose who they want to lead their country through the recovery – and beyond – for the next three years.