Claims by Labor that todays interest rate increase was related to GST are patently false.
The statement by the Reserve Bank of Australia sets out the reasons for todays decision. The Bank makes it clear that it will abstract tax changes and base policy on ongoing inflation. Its decision today relates to the higher growth and stronger activity in the past 12 months, which it expects to be sustained into the near future.
Even people with the poor economic understanding of Beazley and Crean should be able to understand that. Of course, blaming the GST is a cheap, opportunistic and reliable response.
If Mr Beazley really believes that GST is responsible for higher interest rates, he would pledge to repeal it and re-impose his beloved wholesale sales tax. After three days of Labor Party conference he has done everything to indicate he is preparing to do nothing on tax except blame it for everything.
Mr Beazley and Mr Crean can only be judged on their policy record. Under Labor, home loan interest rates hit a peak of 17 per cent.
Home mortgage interest rates under 13 years of Labor Government were never as low as they are today.
Their past deeds are signposts for future action, not their hollow words today.