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Costello's stunning message to families: be grateful for 10 straight interest rate rises.



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Costello's Stunning Message To Families: Be Grateful For 10 Straight Interest Rate Rises Media Statement - 18th November 2007

Peter Costello has provided stunning new evidence of just how out of touch he is when he said Australians should view 10 straight interest rate rises on his watch and an “eight and half per cent interest rate” with “fondness”

Mr Costello made the remarkable pre-election gaffe on his interview with Laurie Oakes on the Sunday program this morning (November 18 at 9am):

I think people will look back with fondness on an eight and half percent interest rate…

Peter Costello has never been in touch with working families. How could he suggest that Australian families should be grateful for the 10 straight interest rate rises under his watch - including six interest rate rises since the last election?

These six interest rate rises alone have cost families around $3000 a year on the average mortgage. Mr Costello either doesn’t understand or simply doesn’t care about the price Australian families with mortgages are paying for his six broken interest rate promises.

For families on the average mortgage Mr Costello’s six broken interest rate promises have cost:

z $256 a month or $3,072 a year in New South Wales;

z $232 a month or $2,784 a year in Victoria;

z $236 a month or $2,832 a year in Queensland;

z $192 a month or $2,304 a year in South Australia;

z $237 a month or $2,844 a year in Western Australia;

z $175 a month or $2,100 a year in Tasmania;

z $202 a month or $2,424 a year in the Northern Territory;

z $244 a month or $2,928 a year in the ACT.

Mr Costello’s stunning claims today come after his economic credibility has taken a battering, particularly for his obvious misjudgement of inflationary pressures in the economy.

Peter Costello claimed in July that inflation was “right where we want it”, only to see the tenth straight interest rate rise on his watch delivered two weeks ago.

But even after the 10th interest rate rise on his watch, and the Reserve Bank’s

Wayne Swan

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upward revision of its inflation forecasts, Peter Costello would not be deterred from a desperate $10 billion vote-buying splurge at the Coalition’s campaign launch.

Australian families deserve better than a Treasurer who will spend recklessly to cling to power and endanger their mortgages for his own self-interest.

Australian families deserve responsible and disciplined economic management that understands the financial pressures they face - and that is exactly what Federal Labor will deliver if elected in six days time.

Authorised by Tim Gartrell, 161 London Circuit, Canberra City, ACT 2600

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