Record low jobless rate, urging inflation add pressure for pre-election interest rate rise

Surging inflation and a record low jobless rate could prompt a Reserve Bank interest rate rise before the May 21 federal election. 

Independent economist Stephen Koukoulas says a May 3 rate hike is becoming more likely after major central banks in the US, UK, Canada and New Zealand acted to get ahead of inflation. 

He tells ABC's Peter Ryan there's a possibility the RBA will assert its independence and follow the 2007 precedent when then-governor Glenn Stevens raised rates a week out from the election that ousted John Howard as prime minister.