Reckless Rudd spending = Higher interest rates for you
6th October, 2009
The folly of Labor’s wild spendathon came home to roost today with a lift in official interest rates, which is sure to be followed within hours or days by higher mortgage rates for homebuyers and small business.“I am pleased that the strong Australian economy left for Labor in 2007 has so far proven resilient enough to withstand the worst of the global economic downturn,” said the Leader of The Nationals, Warren Truss.
“I am far less pleased that Australia is now leading the developed world in lifting interest rates. This is not a blue ribbon that we want or need.
“This decision will have major consequences for people paying off their homes and other loans. The effect will be particularly harsh in regional Australia, particularly if this is just the first rise of many.
“Quite simply, interest rates for small business did not fall as far as they did for most homeowners. But rates for all will be going up together after today.
“It is not as if the Federal Government wasn’t warned. The Coalition has been telling Labor for some time that higher interest rates were in the offing if it did not get its undisciplined spending under control.
“Reserve Bank board member Dr Warwick McKibbin was reported today to have said that interest rates would have gone 3 percent lower if not for Labor’s reckless spending, and will remain higher for at least the next four years.
“Labor’s stimulus package has been shown again to be the debt-driven response of a policy-lazy Government that will have serious long-term effects on the Australian economy,” Mr Truss said.
