(The Epoch Times)
The Reserve Bank of Australia (RBA), for the fourth consecutive year on Melbourne Cup day has blunted celebrations hitting borrowers with a further 25 basis point increase in the cash rate to 3.50 per cent.
"Today's decision is a tough one for Australian families and businesses but it's also another indication that rates could not stay at 50 year emergency lows forever," Mr Swan told reporters.
"Because the economy is recovering we'll see changes to rates from time to time."
RBA governor Glenn Stephens has warned that interest rates could not stay at emergency lows forever, Mr Swan said.
"I don't believe that any bank should have any justification to increase interest rates over and above the increase in the cash rate delivered by the Reserve Bank today," he said.
Based on the increased cash rate, Mr Swan said an average home loan (of $300,000) would increase by $46 per month, he said.
