Interest Rates increase in Australia
The Reserve Bank this morning lifted the official cash rate by 0.25 percentage points to 6.75 per cent - the first time it has moved rates during an election campaign.
At a press conference this morning, Mr Howard acknowledged the “hurt” the rate hike would cause borrowers.
AAP reports: Mr Howard said the rise - the sixth since the 2004 election - would hurt a lot of people.
The increase will add $67 a month to repayments on a $400,000 loan, bringing to $395 the cumulative impact of six interest rate rises since the last election, when the Coalition campaigned on a promise to keep rates low.
