We hear so much talk about interest rates, on the news, in the press, and from politicians. But often, the words we hear sound like another language. So what does it all mean?
The Reserve Bank of Australia today announced it would cut the official interest rate by 25 basis points to 2.5 per cent.
This means that a family with a standard $300,000 mortgage will now pay around $500 less per month, or around $6,000 less every year, compared to when the Coalition was last in government.
Yesterday (5th August 2013) in a press conference, Coalition Shadow Treasurer Joe Hockey said:
“The fact of the matter is, we should not be in a position where interest rates are being cut.”
What Joe is saying here is that families should be paying more money to the banks! Really?
This would create an even greater burden on household costs. It would mean they will have less money for groceries, less for their kids’ school expenses and less for the many other essential items families need.
Do you really want Joe and the Coalition making decisions about our economy that would affect your family when higher interest rates is the kind of thing they would support?
Labor on the other hand has the proven economic credentials to see Australia through tough times.
We were put to the test during the Global Financial Crisis – the greatest economic conditions since the Great Depression – and we are proud of what we achieved.
We avoided recession and we protected jobs, while maintaining low levels of inflation and low interest rates for Australian working families.
You’re hearing a lot about interest rates because they matter.
They matter because your family should be able to benefit from our strong economy, not pay more money to the banks.
We need your help getting this out there – share this blog with friends, tweet it, post it on your Facebook and help us make sure people have the facts.
By Senator Penny Wong