Pressure mounts on Rudd to offer relief on interest rates

Members of the opposition have been haranguing prime minister Rudd for his failure to support Aussies who are locked into fixed-rate home loans.

Opposition treasury spokesman Joe Hockey has claimed that Mr Rudd has a responsibility to support those who are paying way above the Reserve Bank of Australia’s (RBA‘s) base rate because the prime minister spent the early part of last year “running around warning everyone about inflation”.

Many people were encouraged to strap themselves into fixed rate deals as the premier waged his “war on inflation”, but are now paying home loan interest rates that are some 400 basis points above the best variable low-interest home loans.

However, Hockey’s opposite number Wayne Swan was quick to reject claims that Rudd and the gang were responsible for interest rate hikes enacted by the RBA earlier this year.

Speaking to Network 10, he said: “The main reason that they are there … is because interest rates went up something like ten times under the Liberal Party.”

The Reserve Bank has been taking every opportunity to take a hack at interest rates since the onset of the financial crisis.

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