Labor's reckless spending means higher interest rates for homeowners

The Rudd-Gillard Government’s reckless spending has put more pressure on home borrowers, with the gap between the Reserve Bank cash rate and the standard variable mortgage rate increasing even further, said Shadow Minister for Housing, Senator Marise Payne.

“Labor’s reckless stimulus spending has contributed to the interest rate gap increasing from 1.8 per cent under the Howard Government to 3 per cent in November 2010,” Senator Payne said.

“The Rudd-Gillard Government has learnt nothing from this and continues with its so-called “nation-building” stimulus spending, even while unemployment is low, the minerals sector is booming and the RBA is cooling things down with rate rises.

“Official interest rates have now risen seven times on Labor’s watch since the end of 2009. This is leading to higher bank lending rates and more pain for home borrowers.

“Instead of mounting useless attacks on the big four banks for gouging home loan customers, Julia Gillard and Wayne Swan should stop running up so much debt and competing with these banks for the same money in the wholesale funding markets.

“Governments cannot directly intervene in the housing market to make prices affordable for Australians, but by putting pressure on interest rates through running large deficits, they can certainly make things worse.

“Australian home borrowers are now paying the price for the $900 stimulus cheques, defective pink batts and overpriced school halls, with interest.”