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so easy to be optimistic about the future with a couple of hundred mill in the kick.
Posted by: philj of perth 5:05pm today

Can you say: "Stockholm Syndrome?"Or better yet... is the fox tending the henhouse?
Posted by: Johnnie of Tassie 5:05pm today

All you Howard and Costello huggers spouting on about another ellection in 3 yrs. Tell me who are you going to replace Rudd with? Howard is GOUWNNNNN and Costello is GOUWNNNnnn incase you failed to notice. You have Mr 7% to fall back on though. You all want to hope that Rudd keeps us on track because there is little alternative at the moment
Posted by: Doom & Gloom of WA 4:27pm today

ping pong 4:05pm today correct.
Posted by: Deakins of Sydney 4:26pm today

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Consumer sentiment falls to near 15-year low
Banks accused of interest rate robbery
Petrol pain as oil price nears $US110

HIGHER interest rates and rising food and fuel costs have pushed consumer confidence to its lowest level in almost 15 years.

People with mortgages are the least upbeat, but rising food and fuel costs are also making their impact felt.

The latest Westpac-Melbourne Institute consumer sentiment index figures out today show an "extraordinarily large fall" - down 9.1 per cent in March to 88.6 points.

The index, which is based on a survey of 1200 people, is below the 100 level, showing that pessimists outnumber optimists.

Rudd upbeat

However, there is still one person who is optimistic about Australia`s economic future - Prime Minister Kevin Rudd.

"Australia`s economic fundamentals are sound and our regulatory arrangements are the best of any of the world,`` Mr Rudd told Parliament today.

But Mr Rudd also acknowledged the negative impact the global credit crisis had had on consumers through higher borrowing costs, reduced access to credit and rising mortgage rates.

"Developments in the global economy when compared with significant inflation pressures in the domestic economy reinforce it is a time for responsible economic policy and prudent fiscal management,`` he said.

Repayment anxiety

A separate survey has found three-quarters of Australians are worried about their ability to pay their bills.

A phone poll commissioned by Veda Advantage showed 75 per cent of respondents had debt repayment anxiety.

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Price rises were a concern for 55 per cent of the 1050 people polled, according to the Galaxy Research.

Rising food and petrol costs were a worry for 55 per cent of respondents, with one in two complaining about higher food prices.

And more expensive health care was a concern for 44 per cent of people, with climbing mortgage and rent costs an issue for 37 per cent.

Erica Hughes, of Veda Advantage, said: "The study also found that 1.3 million Australians spend more than half their income on debt repayments, and 1.8 million Australians spend more than 40 per cent of their income on repayments."

Drop in confidence

The Westpac-Melbourne Institute index is 23.3 per cent below its level a year ago and at its lowest level since September 1993.

Also, it is the first time since March 2001 the index has dropped below 90 points.

Westpac chief economist Bill Evans said the March result represented an "extraordinarily large fall".

While March was the month where the Reserve Bank of Australia completed back-to-back rate rises, Mr Evans said the result could not just be "attributed to shock effect of consecutive moves".

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"Gloom over the increases in interest rates has probably been compounded by additional mortgage rate increases by lenders and speculation that there is more to come," Mr Evans said today.

"Confidence on issues such as employment; inflation; international conditions and overall economic conditions has collapsed relative to a year ago."

All five of components of the index fell in March.

Mortgage stress

Those who have mortgages were among the least upbeat, with their sentiment levels down 31.5 per cent to 82.6.

Mr Evans said the survey showed the RBA`s recent series of rate hikes "may have finally slowed demand such that inflationary pressures will ease."

"We do not expect that the Bank will raise rates again in the cycle," Mr Evans said.

However, he said inflation will remain uncomfortably high, keeping interest rates around these levels until the second half of 2009 "at the earliest".

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