As welcome as Western Australia’s reawakening economy is for the business sector, there could be a shock in the offing from east coast policymakers if the Reserve Bank of Australia points the interest rate needle north in an effort to cool the overheated housing markets in Sydney and Melbourne.

Just as the GST distribution formula lags the real-time economy, much to the chagrin of many in WA, which will receive just 30.4 cents in GST for every dollar raised in the state in 2017-18, an increase in interest rates to benefit the economies of other states would hurt WA.

The current low rates encourage business investment in WA, helping lift the state out of the doldrums. An increase in the RBA rate can only temper than enthusiasm to invest here.

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