Editorial A Super Idea To Stop Us All Spending

Illawarra Mercury

Thursday March 6, 2008

EXPECT the major banks to roll out another home loan interest rate increase by the end of the week - perhaps even raising them beyond the Reserve Bank hike.

Adelaide Bank moved quickly yesterday to pass on more than the RBA increase to its mortgage brokers.

In the meantime, hundreds of thousands of Australians with other banks are bracing themselves for what the 12th consecutive official increase will mean to them.

Federal Treasurer Wayne Swan again spoke tough yesterday, declaring it was a competitive market and customers should move their business if they can get a better deal.

Mr Swan has been at enormous pains to blame the Howard government for its failure to put the brake on inflation.

He might be able to do this for a short time, but eventually he will have to own this problem of an economy under pressure.

It is hard to see how he will put a lid on inflation when in this term of government Kevin Rudd and crew plan to dollop out a staggering $31 billion in tax cuts.

Given our continuing lust for material goods, will Australians simply head to the nearest Harvey Norman?

The ACTU's plan of increasing the superannuation levy from 9 per cent to 12 per cent, instead of us expecting annual tax cuts, seems like a smart move to help us save and keep inflation down.

© 2008 Illawarra Mercury

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