With a little over two weeks to go the election issues pushed by each major party have significantly narrowed. Instead of talking about climate change, work choices health and hospitals we are now back to the economy. This week’s interest rate rise is the sixth since the last election when Prime Minister Howard promised to keep them at record lows. Howard is now playing to his strength and gambling everything on voters trust. He is trying to convert this interest rate rise to his advantage by bringing the focus back on economic management. Despite this sixth consecutive rate rise he is now asking voters to trust him again when he claims that interest rates will be lower under him than under Labor. If people forgive him, and continue to trust him, he may well win the election.
The test for Kevin Rudd is whether he can show people that Howard has broken their trust over interest rates and that Howard can no longer be trusted to manage the economy. After all, we know that if the coalition is re elected that Peter Costello will become Prime Minister during the next term but we still don’t know who will be his Treasurer – who will be in charge of the economy that Howard wants to make the central issue of this campaign?