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The banks give Mr Keating the thumbs down



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Ppfpr PpitVi DEPUTY LEADER of the OPPOSITION SHADOW TREASURER DEPUTY LEADER of the OPPOSITION PRESS RELEASE

SHADOW TREASURER

THE BANKS GIVE MR KEATING THE THUMBS DOWN

Two Australian banks have given Prime Minister Keating and Treasurer Dawkins the thumbs down within the space of only two days.

The decision by the National Australia Bank to increase its fixed term home mortgage rates today marks the second increase in rates by an Australian bank in the space of only two days.

Like the rate rise announced by the State Bank of New South Wales on Tuesday, the increase in home loan rates announced by the NAB flies in the face of a specific assurance from Prime Minister Keating that rates will not go up in the foreseeable future.

Speaking on Perth radio this week, the Prime Minister, Mr

Keating, said he did not believe rates would rise in the

foreseeable future.

The same desperate, political line has been run repeatedly by the Treasurer, Mr Dawkins.

Yet, we find in the space of two days, two Australian banks have broken ranks and pushed their fixed-term mortgage rates up.

Taken together, the two increases, underline the fact that the financial markets, and the banking fraternity do not believe the Prime Minister's and the Treasurer's assurances on interest rates.

On a broader front, it is clear the failure of the Budget to

engender confidence in the markets is finally exacting its price.

Labor's promises no longer hold water.

The simple reality is that this Labor Government has presided over a record build up in Australia's foreign debt, and a

significant deterioration in the Commonwealth's Budget position.

It is no surprise that the markets are pushing up interest rates.

The banks are telling everyone that they don't have any

confidence in the Government's budget strategy.

4 September 1992 Melbourne

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH

Contact: David Turnbull (06) 277 4277 D142/92