Wayne Swan would be fuming tonight. The Reserve Bank of Australia has put up the official cash rate another 25 basis points, only for the Commonwealth Bank of Australia to up rates 45 basis points.
The 25 basis point rise to 4.75% will come as another blow to home owners struggling with crippling mortgage debt.
With household debt quadrupling in the past 25 years on the back of surging house prices, data from the Australian National Accounts shows the pressure mortgage owners are under. In June 2010, households were forking out 75% more for interest payments on dwellings as a percentage of their net household income, than in 1989 when the bank standard mortgage rate hit 17%.
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