Press Release
ACTU Media Release - Reserve Bank should wait and see before working families are hit by interest rate rise say unions
Monday February 04, 2008
Unions today (Monday February 4, 2008) warned that low and middle-income working families cannot afford another rise in interest rates and are calling on the Reserve Bank to hold rates at current levels until the full impact of the global financial situation is clearer.
Working families are already financial stressed and cannot afford further rises in repayments for home loans, credit cards and other loans says the Australian Council of Trade Unions.
Reports show up to 750,000 Australian families could be affected by ‘mortgage stress’ this year if interest rates go higher and of these up to 300,000 could be at risk of losing their homes.
ACTU President Sharan Burrow said:
“The Reserve Bank should wait and see on interest rates until the effect of the turmoil in the United States caused by the sub-prime housing market is clearer.
“It needs to consider the plight of working families who are struggling to keep their heads above water.
“Let’s not jump to anti-inflation measures which will hurt working families.
“Inflation is a threat to the living standards of Australian working families, but there are a number of ways to deal with the problem besides putting up interest rates.
“There should be a serious discussion about the range of solutions available, including whether the inflation target of 3 per cent is sacrosanct,” Burrow said.
Unions welcome Australia 2020 Summit
Australia’s unions have welcomed the Prime Minister’s announcement of the Australia 2020 Summit and look forward to participating.
“The Summit will be an important opportunity for the Government, business, unions and the community to join together cooperatively and begin to address the social and economic challenges facing Australia after 11 years of neglect by the Liberal and National Party Government,” Burrow said.
Last modified 2008-02-07 10:50 AM
