 When will interest rate rise again?
Home owners should brace themselves for interest rate rises as soon as early 2010, says federal treasurer Wayne Swan.
The treasurer says that as Australia repairs itself from the global recession, rates will obviously have to rise.
Australia 's official interest rates of 3 per cent is a 49 year low and the result of consecutive rate cuts during the worst of the crisis.
"Rates are at the lowest levels in over 40 years, so it is obvious that some time in the future rates will certainly rise and the Reserve Bank will take that decision," he said.
"For the time being the Reserve Bank has said that we still have a difficult outlook and it takes that into account when it's setting the future of rates."
But Mr Swan rejected the suggestion that the boost to the first home owners grant was driving house prices up.
When the RBA met last month, rates were kept on hold at 3 per cent. When the central bank meets again tomorrow it is expected that rates will remain on hold for another month.
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