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Housing interest rates



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Leader of the Opposition

NEWS RELEASE BY JOHN HOWARD MP

HOUSING INTEREST RATES

Housing interest rates could rise again.

Today's revelation that the Government is considering a lift in the Australian Savings Bond rate is bad news for home buyers.

On monetary policy grounds the Government has little option but to lift the ASB rate.

Its lax monetary policy last year and the weakness of the Australian dollar caused in part by such things as the MX cave-in and the abandonment of monetary targets makes action to shore up the ASB unavoidable.

However, ASB's compete directly with banks and building societies for household funds.

Therefore, any rise in the rate of ASB's will automatically mean that banks and building societies will increase their interest rates to remain competitive♦

If housing interest rates rise yet again homebuyers are entitled to feel bitter towards the Hawke Government.

Bdth Mr. Hawke and Mr. Keating promised before the 1984 election that interest rates would fall in 1985. They have already gone up and further rises may be in the pipeline.

Mr Keating and Mr Hawke keep telling us that the Prices and Incomes Accord and the economic policies of the Government have brought greater prosperity to Australia.

Parliament House, Canberra, A.C.T. 2600 Phone 726994

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Those Australians paying off home mortgages and who have had to bear the brunt of the highest real interest rates for fifty years are entitled to feel cynical about the declarations of the Treasurer and Prime Minister.

4 October 1985