Nov 8, 2006

Government’s interest rate failure will cause pain for Grayndler families

Government’s interest rate failure will cause pain for Grayndler families: Albanese

MEDIA RELEASE – ANTHONY ALBANESE MP

8 November 2006

Today’s interest rate rise will cause massive pain for families in the inner west said Anthony Albanese MP, Federal Member for Grayndler.

“This is the Coalition Government’s 8th consecutive interest rate rise and the 4th since the last election. Interest rates are now as high as they have been in a decade.”

“Households are now spending a record share of their income on mortgage interest repayments – more than when rates were at 17 percent. Today’s rise will add nearly $50 dollars to the monthly repayments on a $300,000 mortgage.”

The Howard Government has failed to keep a lid on inflation in Australia’s economy, and as a consequence interest rates have kept going up, and up.

“The Reserve Bank has been warning about the threat of high inflation for several years — but unfortunately the Government has been ignoring those warnings.”

“Labor understands the new interest rate reality – high levels of debt means there is no such thing as a small interest rate rise,” said Mr Albanese.