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Costello softening up families for more rate rises.

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Wayne Swan MP Federal Labor Shadow Treasurer 9 March 2005


On the Lateline program last night Peter Costello said that although interest rates of 9 percent weren’t desirable, anything between 6 and 8 percent was acceptable.

This shows the Government has given up on trying to keep interest rates low, and is instead softening up Australian families for further interest rate rises.

If interest rates were to reach 8.0 percent, a family with a $300,000 mortgage would be forced to pay an extra $186 per month including the $48 they copped after last Wednesday’s rate rise.

Interest rates of 8.5 percent would mean an additional $286 per month on the same $300,000 mortgage.

Interest rates of this magnitude - while acceptable to the Treasurer - would devastate family budgets and put untold pressure on family budgets.

Peter Costello’s backflip came less than a fortnight after the Treasurer’s claim that any interest rate under 10 percent was low exposed him as out of touch with Australian families.

Peter Costello has shown a callous indifference to the impact interest rate rises have on family budgets.

The Treasurer’s attempts to soften up the public for further rate rises show he’s given up trying to keep them low, and Australian families will pay the price.

Wednesday 9 March 2005 Contact Jim Chalmers 0417 141 676