FEDERAL Treasurer Wayne Swan says the latest official interest rate rise was “unsurprising” but admits it will be tough on the family budget.
The Reserve Bank of Australia (RBA) today raised the cash rate by a quarter of a percentage point, to 3.75 per cent.
It is the first time the RBA has lifted the cash rate three months in a row since it began announcing its decisions on monetary policy in January 1990.
Mr Swan said rates could not have stayed at an emergency half-century low of 3.0 per cent forever.
“This is tough for families … when rates go up it has an impact on the family budget,” Mr Swan said in Canberra.
He said the Australian economy is recovering and what that means is that over time rates will gradually increase.
“The fact is the Australian economy is performing better than just about every other advanced economy – lower debt, lower deficit and lower unemployment,” he said.