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More interest rate pain to come

More pain to come

AUSTRALIAN families reeling from the latest interest rate hike be warned - it ain`t over yet.



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dennis of sydney and bob of queenslandwe had growth for 6 years before john howard and lets not forget the rates have gone up up up with howard in office and i wish he was still in somewhat so that he and costello could cop all the blame for the economy they createdgo and read OZNOMICSit tells the truth about our economynot the bs we have has to listen too from that lieing howard goverment.for those who want to read the real reason for our economy google [OZNOMICS.]where is the liberal ideas on how to fix the problem seeing this is their economy all we get from nelson and turnbullis stop wingeing about the mess we left you with rudd and fix it.liberals the greatest economic managers pffff.

Posted by: david of geelong 10:09am today

Rudd is a media tart who promises alot and delivers little. Nice to know we have a PM who is unwilling to take any responsibility for one of the more prevalent issues facing the Australian people at present. What exactly is he in office for? Itbaffles me that the Australian people didn't see through his facade before electing him into government.

Posted by: Ben of Sydney 10:09am today

Not another interest rate rise, what will I give up now mmmmm looks like another pack of smokes less a week or a carton of beer what to do? How should I know I am uneducated moron, thanks Anna of Sydeny you have solved my problem, and i am feeling much better already

Posted by: Richmac of Dbay 10:08am today
Read all 92 comments

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CONSUMERS reeling from another $50-a-month interest rate hike have been warned there will be more pain to come.

Prime Minister Kevin Rudd declared yesterday the Government would do "whatever it takes" to bring inflation under control.

As the Reserve Bank Governor signalled there could be more rate rises in 2008, Mr Rudd said no area of government would be spared from the razor gang.

He even hinted that politicians would have their next pay increase cut back.


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"We will do whatever it takes when it comes to Budget policy to put downward pressure on interest rates," he said.

The latest interest rate rise is the 11th consecutive increase and takes the official cash rate to a 12-year high.

But it is even worse for householders who had to absorb an unofficial rate rise in January due to the meltdown in the US housing market.

The latest hike adds an extra $50 to monthly repayments on a $300,000 loan and takes standard variable lending rates to about 9 per cent.

But in a hardline statement explaining the change, Reserve Bank Governor Glenn Stevens flagged tough times ahead, saying a significant cut in demand was needed to reduce inflation.

"The board will continue to evaluate whether the stance of policy will be sufficiently restrictive," he said.

With hundreds of thousands of Australian families already under mortgage stress, Prime Minister Rudd admitted yesterday`s announcement was a cruel blow.

"After 10 interest rate rises in a row, this one will really hurt," he said. But Mr Rudd also tried to shift the blame, saying the Government inherited underlying inflation running at a 16-year high.

Opposition Leader Brendan Nelson rejected the accusation, saying it was time for the Prime Minister to stand up.

"Mr Rudd was elected to take responsibility for this, not to complain about it," he said.

Two major banks are predicting another interest rate hike in May and inflation is expected to keep pushing up prices.

The only relief in sight for many families is promised tax cuts due to be delivered in July but some economists are warning these will be inflationary.

Treasurer Wayne Swan said he felt the pain of households.

"I could understand why families would be angry and I can particularly understand that families will be very angry with the previous government," he said.

 

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Today`s Top Picks

More pain to come

AUSTRALIAN families reeling from the latest interest rate hike be warned - it ain`t over yet.



Font size: +-

Send this article:PrintEmail

Have Your Say

Latest Comments:

dennis of sydney and bob of queenslandwe had growth for 6 years before john howard and lets not forget the rates have gone up up up with howard in office and i wish he was still in somewhat so that he and costello could cop all the blame for the economy they createdgo and read OZNOMICSit tells the truth about our economynot the bs we have has to listen too from that lieing howard goverment.for those who want to read the real reason for our economy google [OZNOMICS.]where is the liberal ideas on how to fix the problem seeing this is their economy all we get from nelson and turnbullis stop wingeing about the mess we left you with rudd and fix it.liberals the greatest economic managers pffff.

Posted by: david of geelong 10:09am today

Rudd is a media tart who promises alot and delivers little. Nice to know we have a PM who is unwilling to take any responsibility for one of the more prevalent issues facing the Australian people at present. What exactly is he in office for? Itbaffles me that the Australian people didn't see through his facade before electing him into government.

Posted by: Ben of Sydney 10:09am today

Not another interest rate rise, what will I give up now mmmmm looks like another pack of smokes less a week or a carton of beer what to do? How should I know I am uneducated moron, thanks Anna of Sydeny you have solved my problem, and i am feeling much better already

Posted by: Richmac of Dbay 10:08am today
Read all 92 comments

We welcome your comments on this story. Comments are submitted for possible publication on the condition that they may be edited. Please provide your full name. We also require a working email address - not for publication, but for verification. The location field is optional.Read our publication guidelines.

Submit your feedback here:

(So you don`t have to retype your details each timeyou send feedback.)

Video

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Love & Relationships - Find a date near you on Match.com - # 1 Online Dating site Worldwide.
 
Virgin Mobile Cheap calls & text across Australia.
 
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