Prime Minister John Howard has blamed the states for putting upward pressure on mortgage interest rates, ahead of the Reserve Bank of Australia's meeting this week.
John Howard was speaking about this week's Reserve Bank meeting where official interest rates that effect home loan mortgage rates are tipped to be increased.
He says while the Federal Government is running a budget surplus, the states are going into debt.
"My point simply is that if you go into debt, you have to borrow to finance that debt and when you borrow the finance that debt, you put up with pressure on interest rates because you compete with private borrowers," he said.
Source: ABC
