Rate rise adds to budget pressure

[Violet_Crumble]

Interest rates are on the way up, only six days out from a federal budget widely expected to include further personal tax cuts and generous spending in a number of areas, including child care and education.
Although those measures might fuel inflation fears and, in turn, put further pressure on interest rates, Prime Minister John Howard and Treasurer Peter Costello maintained that the economy remained in strong shape.

The Reserve Bank announced yesterday that it had lifted official interest rates by a quarter of a percentage point to 5.75 per cent. Australia's banks are expected to pass on the rise in full, lifting standard variable home-loan interest rates above 7.5 per cent.

The monthly repayment on a typical home loan ($300,000 over 25 years) will go up by almost $50.

http://canberra.yourguide.com.au/detail.asp?class=news&subclass=national&story_id=477811&category=general%20news&m=5&y=2006

What was it that little Johnny Howard was telling everyone during the election campaign about how interest rates would go up if they voted Labor? I guess this rate rise added to the soaring price of petrol is going to force a few folk who believed that crap and voted Liberal out of their homes. I hate to be callous, but for them my Care Factor is set at zero...

Violet...

[PinkUnicorn]

1. Ah, don't worry

We'll just clock it up on the credit card or flog off some more of the furniture. Hey, if that's good enough for the government it's good enough for us.

Besides, our illustrious lord and master is giving us a tax cut, so get down on your knees and kiss his shoes. Why, you could possibly pay for a litre of petrol with this generosity.

[Violet_Crumble]

2. He isn't giving all of us a tax cut...

Only those who earn over $65,000 a year...

[Random_Australian]

3. 'all of us.... except the ruffians who don't need the money anyway'

[gemini_liberal]

4. *makes comment about how they'd be 100000% under Labor*

"The economy is great. Corporations are seeing great profits! Stop complaining. Get a job. Australia had its chance to change government in 2004, and re-elected us in a landslide. Shut up. Anything that goes wrong is your state government or Bob Hawke/Paul Keating's fault."

Man, if I didn't actually, you know, care about other people I think I could easily do the job of Howard government spokesperson hahaha.