Home loan mortgage interest rate rise is not needed says Finance Minister
23/04/2012 
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Finance Minister Nick Minchin has indicated he does not believe an expected hone loans mortgage interest rate rise this week is warranted.
The Reserve Bank of Australia (RBA) is widely tipped to raise interest rates this Wednesday by one quarter of one per cent.
Mr Minchin today said he did not want to give the RBA gratuitous advice but pointed out the consumer price index was 2.1 per cent for the year to June and underlying inflation was running at 2.6 per cent.
“From our point of view, their job is to keep inflation between two to three per cent and that’s where inflation is,” he told the Ten Network.
Mr Minchin said the Federal Government was minimising upward pressure on inflation and interest rates.
“All our levers that we control are set to low inflation, we’ve got spending under control, we’ve paid off debt, we’ve reformed the industrial relations system,” he said.
He said the Labor states were putting upward pressure on rates by going into debt.
Mr Minchin said he still believed interest rates would always run lower under a coalition government than a Labor government.
Source: Courier Mail
Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers.
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