Thursday, October 25, 2007

Interest Rate Facts – Labor Wins

Here are some Interesting facts for those misinformed by the Howard government. On August 1993 the interest rate was at 4.75 under the Keating government. Keating left government with the rate at 6.50, where it continued to go down. The following is the interest rate at then end of the Keating government, and the Howard government at the current time.
Keating – 11.50 to 6.50, a reduction of 5% (1991 and 1996)
Howard – 7.00 to 6.50, a reduction of 0.5% (1996 and 2007)
The infamous 17% cash rate was decreased by Labor from 1990 to 1996 to 6.5%, a 10.5% reduction. Reducing the rate from 1990 levels by 12.25% in August 1993.
Prime Minister John Howard will most likely leave office with the same interest rate he began with, as the Reserve bank is intended to lift the cash rate in November to 7.00. These facts really put it in perspective which party is the better economic manager.
It has to be noted the worse Interest rate ever recorded in Australia’s post-war period was under Treasurer John Howard, that rate was 22%. Unemployment under Treasurer Howard reached 11 per cent, inflation 11 per cent and the Budget deficit $9.6bn, $40bn in today's terms. The worst performance compared to any developing economy during that period.It is in fact the restructuring from the Hawk and Keating governments that fixed up the economy that Howard buggered. The Keating and Hawke governments floated the dollar, deregulating the financial system, and put concentration on relations with Asia. The reforms carried out by the Hawke government put in place the great growth we have today.
It has to be also noted, that Housing affordability is at an all time low, interest rates are increasing, petrol prices are at record highs, and goods and services are drastically inflated. The notion that Australian’s have never been better off is a complete farce.
http://www.rba.gov.au/Statistics/cashrate_target.html

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