Costello spins new line on not so low rates

Treasurer Peter Costello said interest rates could still be considered low if they remain below 10 per cent. “If you see a single-digit in front of your interest rate, that's low,” Costello said. The standard home loan rate is 7.05 per cent. Financial markets expect the Reserve Bank to raise rates by 0.25 per cent when it announces its board's decision this week, with the probability of a further 0.25 per cent rise in April. This would take home loan rates to 7.55 per cent, their highest level since February 2001.

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