In what could be an election campaign blow to the Howard Government, the Reserve Bank board is today widely tipped to raise official interest rates.
It is expected to raise the cash rate, and a rate rise could badly hurt Coalition MPs in marginal electorates.
Labor's Treasury spokesman Wayne Swan says the RBA does raise rates, the Prime Minister must shoulder much of the blame.
"What it will demonstrate is Australians can no longer trust John Howard because he simply doesn't understand what life is like around the kitchen table," he said.
"Three years ago he said trust me, I'll take personal responsibility for interest rates, then he put his feet up and did nothing."
But Liberal backbencher Cameron Thompson says Labor should look at its own books.
"Their track record when it comes to economic management is abysmal, that's why economic management remains the strong suit of the Government," he said.
"The issues are, what is the level of confidence in the community about our economic management, and I've got to say, it's very high."
The Reserve Bank's decision will not be made public until tomorrow.
If it does lift rates, it will be a first for an election campaign. © 2007 Australian Broadcasting Corporation
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