interest rates rise

Due to the inflation figures being higher than expected economists are tipping a fourth consecutive interest rate rise when the Reserve Bank meets next Tuesday.

The fact that interest rates are on the rise has made consumers more wary when it comes to making big financial decisions regarding the purchase of a home, blocks of land and for motor vehicles, thus borrowing fell for the month of November.

Homeowners and credit card users are paying on average an extra $3000 a year due to the global financial crisis.

Treasurer Wayne Swan has repeatedly asked the banks to stay in line with the Reserve Bank rate rise but to no avail.

There is a very strong possibility that there will be another interest rate rise due to the fact that a senior Reserve Bank official stated that Australia has entered a new upswing that would establish a foundation for years to come.

The possibility of a big interest rate rise next month is becoming more evident after the Reserve Bank revealed it was becoming increasingly concerned the economic recovery could stoke inflation.

By fast-tracking the latest interest rate rise by four days the big banks cheated borrowers out of $17 million.

The Reserve Bank of Australia (RBA) raised official interest rates by 25 basis points to 3.25% unexpectedly. Australia is the first G-20 country to raise official interest rates.

The opposition has stated that increases in interest rates could push thousands of recipients of first home buyers grants close to default.