There is a smell in the air, isn't there?

They really have to ram home the fact that, really, interest rates don't matter to the homebuyer-it's how much you have to find each week that does.

Add to this the high level of personal debt that will go up too, and you do have a nasty bite on your expenditure.

BigBob,
if you factor in a two speed economy---prosperity in the west and stagnation in the industrial capitals of Sydney and Melbourne--then Howard's battling workers in manufacturing in either of those cities would be feeling the pinch.

They are living in far-flung suburbs with massive mortgages and mounting petrol bills.The housing boom is well and truly over in the south-east of Australia with NSW in recession and Victoria close. They need a reduction in interest rates not an increase.

The increase makes sense re WA's economy is overheating, not in NSW.

Hartcher in the SMH makes the point today that the ALP have begun rehabilitation of Keating's image - which points to them beginning to get over the hump of the 17% interest rates and recession that he presided over (one could say to our eventual longer term benefit - still short term pain lingers hard in the collective memory).

And that they effectively silenced Howard by bringing up the 21% interest rate he produced as Treasurer - apparently the first time this has been used. A strange thing to have never been used to counter Howard's 17% mantra.

And the ALP is still pushing hard on affordability.

Funny thing, this world has a habit of turning things around sharply on those that become sure of their own success.