Dr Nelson has visited the New South Wales city of Goulburn as part of his so-called listening tour.

He has called on the Federal Government to provide more social security support through Centrelink for farmers and rural businesses.

Dr Nelson also says the Government should look at changing the eligibility requirements for exceptional circumstances support so more small businesses can receive help.

"I also think that we're going to have to extend the availability of exceptional circumstances financial support, to allow farmers to restock if they're into their cattle and sheep and also to replant," he said.

-abc.net.au

Figures from the Australian Bureau of Statistics show the number of new owner-occupier home loans written in February fell 5.9 per cent, seasonally adjusted.

The HIA's Ben Phillips says the full impact of the interest rate rises in February and March is yet to be seen and the downward trend for housing finance is likely to continue.

"Most banks have also been increasing their retail rates so we're likely to see that the numbers will be worse again when we look at them next time around for March," he said.

"We expect that this will probably continue for at least the short term, whilst interest rates remain quite high."

Mr Phillips says the recent interest rate rises and the possibility of further increases may see investors shy away from real estate.

"We're likely to see less investment in housing - both new and existing housing that is - and this is a big concern for rental stress," he said.

"We've already got a situation where there's a very limited supply of housing there for rent and we're likely to see that this situation will only get worse. You'll see continued increases in rents."

-abc.net.au

Newspaper reports today claim the Federal Government is about to introduce FuelWatch nationally, which would force petrol stations to pre-register fuel prices on a public website.

The scheme already operates in Western Australia where it has been responsible for a two-cent a litre drop in petrol prices.

Alan Evans from the NRMA says he hopes the Government goes ahead with the scheme.

"What it would mean is that motorists would know exactly what they were paying for petrol the next day," he said.

"They wouldn't get caught out by sudden hikes like we've seen in Sydney and Melbourne of up to 20 cents a litre in a matter of minutes.

"And certainly in the whole it brings the average price down."

The New South Wales Opposition is calling on the Federal Government to quickly make up its mind about introducing the scheme.

The Australian Securities and Investments Commission (ASIC) report shows the big banks are charging higher exit fees on home loans than credit unions and building societies.

ASIC says the larger banks are charging an average $1,080 to exit a home loan, while credit unions are charging an average $400.

Treasurer Wayne Swan says he wants to make it easier for people to switch lenders.

"For many consumers it's not clear what entry and exit fees they will pay and at the moment, the average mortgage is refinanced every three years," he said.

"So having a very close focus on these entry and exit fees can save people a lot of money."

Mr Swan is encouraging mortgage-holders to shop around.

"In addition to our account-switching package, we want to shine a light on these entry and exit fees," he said.

"Already one bank has produced a mortgage product which is free of exit fees and that's a good thing, and we want to see more of that and we will get more of that if there is full disclosure."

-abc.net.au

The ASIC report commissioned by Treasurer Wayne Swan shows that the bigger banks had exit fees on a larger proportion of their products than other lenders, with more than 90 per cent of products carrying the charges.

But Australian Bankers' Association chief David Bell says those fees are still lower than mortgage lenders which are not regulated.

"We're very pleased with this report, it shines a spotlight on the fees that are charged and it shows very clearly that the fees charged by banks for mortgage entry and exits are lower than for non APRA-regulated lenders," he said.

-abc.net.au

There are more predictions of skyrocketing rents across the major cities.

Australian Property Monitors says median asking rents have already risen at double-digit rates over the past 12 months, and a further 50 per cent hike over the next four years is likely.

Housing Minister Tanya Plibersek says the Government is doing its bit to make a difference, but there are no quick fixes.

"We've set aside half a billion dollars for a housing affordability fund to bring down the cost of new homes, we're setting up first-home saver accounts so that young Australians can save up a deposit for first homes," she said.

"We're doing a number of things, but as I've said many times, there's no silver bullet to this problem."

-abc.net.au

The latest quarterly report on rents from Australian Property Monitors says median asking rents in the major cities have already risen at double-digit rates over the past 12 months.

It expects a further 50 per cent increase in most capitals over the next four years.

It says strong migration levels are outpacing residential construction, while renters are being discouraged from moving into home ownership by rising mortgage interest rates.

-abc.net.au

A Federal Parliamentary inquiry has begun in Canberra, looking at housing affordability.

Mortgage stress is defined as when a borrower pays at least 30 per cent of their income on a home loan and the latest figures show that is the case for 62 per cent of first home buyers.

But Treasury spokesman Phil Garton says there needs to be some perspective in the housing debate.

"It's not the case that anyone who is above 30 per cent income is necessarily in financial stress," he said.

"It's going to depend on their circumstances, particularly income levels.

"Generally, the higher the income level the less likely it is that the fact you are paying 30 per cent of your income is going to be causing financial stress."

The Parliamentary committee has also heard house repossessions have more than doubled over the past few years.

Treasury officials say last year there were around 10,000 Supreme Court orders for repossessions across the country.

Mr Garton says there has been a significant increase in a short period of time.

"The 1,000 roughly is the figure for 2007 across all states. I think roughly it's slightly more than doubled over three years," he said.

-abc.net.au

In a widely-expected move, the RBA left the official cash rate at a 12-year high of 7.25 per cent.

In a statement it said there was tentative evidence that growth in domestic demand was moderating and noted that both business and consumer sentiment had softened and credit demand had slowed.

Dr Nelson says the decision will ease the pressure on those under financial strain.

"[It's] a welcome relief for many Australian families and for small businesses throughout Australia," he said.

Federal Treasurer Wayne Swan renewed his warning to the banks to consider the impact on families before lifting rates above the level set by the RBA.

ANZ chief economist Saul Eslake says he expects rates to stay on hold for at least the rest of the year.

"Today's statement says that even though the March quarter CPI is likely to show a further rise in rates of inflation, the board nonetheless thinks that monetary setting is appropriate for the time being," he said.

"That I think is Reserve Bank code for interest rates are on hold for the foreseeable future."

The federal government has urged banks and other lenders to exercise care when offering loans to refugees.

One of Australia's biggest banks has admitted giving unaffordable personal loans to Sudanese refugees, including some with no job, no English and no concept of finance.

The Commonwealth Bank has told the ABC's Four Corners program it introduced a new affordability policy after an internal investigation into the 18 loans to families in south-east Melbourne.

Parliamentary Secretary for Multicultural Affairs and Settlement Services Laurie Ferguson said he was concerned about the report.

would urge banks to be conscious that newly arrived refugees often have tight incomes and limited understanding of the Australian financial system," Mr Ferguson said.

Mr Ferguson said he expected lenders to act in good faith and ensure recently arrived refugees are made fully aware of, and able to meet, their responsibilities under any complex financial commitment.

-aap-ninemsn.com.au

Mr Rudd says it is a development arising from long running negotiations between the two nations on recognising each others financial regulation systems.

He made the announcement while giving a speech in New York.

Mr Rudd says the move will improve the profile of the Australian stockmarkets in the US and encourage more US capital to flow in.

"Just today following a meeting with the chairman of the US Securities and Exchanges Commission, we announced our intention to produce an agreement by year's end for mutual recognition between Australian and US securities regulatory regimes," he said.

"[This aims] to enhance capital flows between the two economies a global first for both the SEC and its Australian equivalent, ASIC."

-abc.net.au

Mr Swan met this morning with the Australian Securities and Investments Commission (ASIC) after the firm's collapse.

The Melbourne-based company has gone into receivership and is being investigated by the commission.

Administrators were called in Thursday night after cash and stock movement irregularities.

The firm owes its bankers more than $1 billion and clients are looking at losses of up to $300 million.

But Mr Swan says he does not think the market will suffer.

"I've been speaking to ASIC this morning and they have formed a special investigation team to look at all of the events surrounding this organisation," he said.

"I'm advised there will be no market disruption, but we will get to the bottom of it through the ASIC investigation."

-abc.net.au

The system will allow those in the property market to complete land title work online, cutting waiting time and reducing the red tape of eight different systems across the states and territories.

"State and territory attorneys-general also agreed to assist in developing model legislation to underpin a national system," federal Attorney-General Robert McClelland said in a statement on Thursday.

"We will now work to develop an appropriate corporate structure for moving a national electronic conveyancing system forward."

Final approval of the plan lies with the Council of Australian Governments (COAG).

The attorneys-general also nudged closer to finalising plans for changes to personal property securities (PPS).

COAG has already offered in principle support for the changes which would radically overhaul the legislation that underpins the way borrowers can offer their personal property, other than real estate, as collateral.

There are 77 separate acts governing PPS, administered by about 30 separate agencies.

New research shows more than a million Australians are paying more than 30 per cent of their income on housing.

In response Prime Minister Kevin Rudd today announced two new measures aimed at boosting housing affordability.

He says if the scheme of giving tax breaks for people who invest in cheap rental accommodation works well, he will extend it and create an extra 50,000 low cost rental places.

Mr Rudd has also committed $30 million to help local councils process development applications more efficiently.

Federal Opposition Leader Brendan Nelson says its a step in the right direction, but says the big blow for housing affordability is set to come tomorrow when the Reserve Bank is likely to put up interest rates again.

Ron Silberberg from the Housing Industry Association (HIA) has told Sky News the tax break measure is welcome, but the Government can go further.

"I think we need to look at not just tax credits, but cash grants. A cash grant would be more effective to a superannuation fund," he said.

"And it's precisely that segment of the financial community that the Government is wanting to attract into its lower cost rental program."

With interest rates expected to rise again on Tuesday, Prime Minister Kevin Rudd used his 100th day in office to unveil a series of measures to tackle the housing crisis.

Spurred on by new figures showing that more than a million households are suffering housing stress, Mr Rudd doubled the number of homes expected to be built under Labor's National Rental Affordability Scheme to 100,000.

Investors will be offered $6,000 tax breaks for 10 years - not the five promised before the election - if they rent out their new properties at 20 per cent below the market rate.

The aim is to cut rent on a new average three bedroom unit to $280 a week from the current $350 - a $70 saving.

"It is no exaggeration to say that in early 2008 housing affordability is the worst it has been in living memory," Mr Rudd told reporters.

"There are now 1.1 million low to middle income households spending more than 30 per cent of their income on housing.

"This is a stunning statistic. And it is a disturbing statistic."

Opposition Leader Brendan Nelson said the scheme was a step in the right direction but not enough to ease the current crisis.

But opposition treasury spokesman Malcolm Turnbull said the announcement had been cobbled together to make it look like the government was doing something ahead of Tuesday's likely rate rise.

More than 700 people turned out to Narangba State High School, north of Brisbane, for the opportunity to speak directly to Mr Rudd and his cabinet ministers.

Many had come to ask for federal grants for a range of local problems - everything from a new arts centre to a community transport project.

But none were more direct than nine-year-old Harry Wells who had come to lobby Mr Rudd to fund insulin pumps for sufferers of type one diabetes.

They cost eight thousand (dollars) each and we need your help," said Harry standing on a chair.

"Will you help us?"

Mr Rudd said he was aware of the issue with the government now considering a funding submission.

"Mate, thank you for the question and thank you for your courage to stand up and ask it," he said.

Mr Rudd took questions for almost two hours and in most cases answered them himself rather than passing them on to his ministers.

"One of the reasons why we want to engage in communities is also to get good ideas about things to do differently for the nation," he said.

"Our ears are always open to anyone who has a suggestion about how we can govern this country better."

The issue that resonated most with the audience was housing affordability.

Speaking to AM after delivering another record half-year profit of almost $2.5 billion, chief executive Ralph Norris refused to guarantee there would not be another independent hike if the global credit crunch worsened.

He says the bank did not go out of its way to defy the the Prime Minister and Treasurer when it raised interest rates beyond the Reserve Bank's hike last week.

"I think the issue here was that we had lifted rates to a lesser extent in the beginning of January and we found by the time we reached the middle of last week, we needed to re-balance the balance between our customers and our shareholders," he said.

"But [it's] fair to say that what really matters is the rate at the end of those increases.

"At the end of those increases, we ended up with the lowest standard variable mortgage rate in the market along with one other bank."

Mr Norris says the degree of 'shellacking' from the public was unexpected.

"I obviously made sure that the Treasurer was warned ahead of time of our decision," he said.

"So, I have to say that I was a little surprised at the reaction the following day."

The Reserve Bank of Australia lifted the cash rate 25 basis points this week to 7.0 per cent in one of the best-telegraphed rate rises in years. The cash rate is at its highest since 1996 and is expected to continue to rise, bringing pain to debt-laden house owners, renters and consumers.

Banks will be quick to pass this rise on. Historically, they tend to pass on a rise between 2-3 days after the Reserve Bank’s announcement and this will be the case again – although as one banking source said “who knows what will happen in this new world”.

By this they were referring to the global credit crunch that has raised the banks’ costs of overseas funding, recently causing them to lift interest rates outside of the Reserve Bank credit cycle for the first time in nearly a decade.

National Australia Bank led the charge, lifting its variable rate by 12 basis points. ANZ was next and received a verbal caning from the Treasurer Wayne Swan for adding 20 basis points. The Commonwealth Bank lifted its rate by 10 basis points and Westpac 15 points. St.George joined ANZ with a 20 basis point rise and, just to be fair, Swan delivered a wrap over the knuckles to the Dragon as well.

By Thursday afternoon (February 7) Commonwealth Bank, St. George and Westpac had all hiked their rates.

Since May 2006, interest rates have risen 1.5 per cent. The average standard variable home-loan rate, minus recent bank increases, will be 8.8 per cent. With the increases, they are wavering around 9 per cent, amounting to an increase in repayments on an average home loan to between $11 and $12 a week.

The Reserve Bank of Australia gave no quarter in its announcement – citing inflation, skills shortages and general wage pressures as its main concerns. While US weakness, a slowing in global growth and tighter lending policies was expected to moderate growth slightly, the bank felt this would not be strong enough to offset inflationary pressures.

Rates to rise again

The outlook for Australian rates generally remains poor. The December quarter 2007 consumer price index revealed the highest inflation rates in 16 years – with the average of the Reserve Bank’s two preferred measures of underlying inflation rising 3.6 per cent over the year – well above the bank’s target range of 2-3 per cent.

Building approvals, meanwhile, jumped 11 per cent in the December quarter – the biggest quarterly rise for three years, as developers responded to a national housing shortage. Fuel costs rose 14.3 per cent in the December quarter and motor vehicle sales rose 1.6 per cent in the month of December.

Even more concerning, the Reserve Bank’s credit figures showed total credit rose 1.1 per cent in December after a 1.7 per cent jump in November and annual growth of 16.5 per cent. Business credit grew by an astonishing 24.3 per cent over the year – its fastest in 19 years – we’re talking the heady 1980s here.

In its latest quarterly statement on monetary policy, released on Monday, the RBA said the risk of inflation remaining uncomfortably high for some time to come is considerable.

"Absent a further shift in economic risks to the downside, therefore, monetary policy is likely to need to be tighter in the period ahead," the RBA said.

Reinforcing its concerns about price pressures in the economy, the RBA has revised up its forecast for underlying inflation, suggesting it will remain well above its target band of between two and three per cent for the remainder of 2008.

The RBA is forecasting underlying and CPI inflation to decline gradually in 2009, to around 3.25 per cent, before falling to three per cent in 2010.

"Indeed, in the near term, it is likely that the year-ended rates of underlying and headline inflation will rise somewhat from current levels, reflecting the succession of large quarterly increases in the three latest quarters."

Commonwealth Bank of Australia chief economist Michael Blythe said the RBA would raise rates more than once to contain inflation.

"At least one, possibly more this year. Certainly more than one," he said.

"There's only one direction given the sort of numbers they're (the RBA) coming up with, and that's up.

"It's clear ... monetary policy is likely to be tight in the period ahead.

"That's as clear cut as the central bank gets on the rate front.

"It looks like a seven per cent cash rate won't be enough."

Mr Blythe said a strong economy and labour market tightness were putting pressure on inflation.

The RBA said financial market volatility and expectations of easing growth could put downward pressure on inflation.

"In particular, if the weakness in the developed world were to lead to a more marked slowing in China and the other developing Asian economies than currently assumed, it is likely that the outlook for the Australian economy and commodity markets would deteriorate significantly," the RBA said.

"This would be expected to lead to some easing in growth of domestic incomes, spending and activity, and hence some further moderation in inflation over time."

Mr Blythe said uncertainty about the global economy could make the RBA cautious.

"It says be cautious, rather than a short, sharp shock," he said.

HSBC chief economist John Edwards said the RBA statement made a May rate rise likely.

In response to pressure from the Federal Government, the sector has agreed to make it easier for customers to switch banks.

The direct debit and direct credit arrangements of customers leaving a bank will be transferred to the new institution.

The association's chief executive David Bell says banks will also support an ASIC-led review of home loan exit fees.

"We're entirely happy to cooperate with that review," he said.

"We've already provided the government a lot of information on those fees, and we think that the review will show that fees that banks charge are fair."

He says one of the main difficulties people have when trying to switch is moving their bill-paying arrangements from one bank to another.

"We welcome anything that increases competition, competition is good, it makes us sharper, and it gives our customers a better service," he said.

The Federal Government has been heavily critical of the Commonwealth Bank's decision to raise its variable home loan rate by 0.3 of a per cent this week, 5 basis points more than the rise in official interest rates.

National Australia Bank followed suit today, lifting its variable interest rates by 0.29 of a per cent. Westpac, St George and Bendigo banks raised their rates yesterday, but kept in line with the Reserve Bank hike of 0.25 percentage points.

Mr Swan says home buyers who are not happy with their bank should be able to take their business elsewhere without unnecessary difficulties.

"It's really important we have a competitive banking sector and really important that in that competitive sector if people want to move their account, they can do so easily," he said.

Mr Swan has discussed a range of changes to banking rules with the Reserve Bank governor Glenn Stevens and other financial regulators at a meeting in Sydney today.

The Treasurer is expected to announce the details of any changes at the weekend.

-abc.net.au

-By Adrian Thirsk

Mr Swan expressed his displeasure with the Commonwealth Bank earlier this week when it went beyond the Reserve Bank's latest adjustment and put up its home loan interest rates by 0.3 of a percentage point.

Late yesterday, AMP Bank did likewise, lifting its variable mortgage rate by 0.33 to 9.02 per cent. It also blamed the global credit market volatility.

Westpac, Saint George and Bendigo Bank also raised rates yesterday.

Today Mr Swan will sit down with the heads of the Reserve Bank, Treasury, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to examine switching fees and other impediments to borrowers moving their accounts to a new lender.

"We have got a significant package that we want to discuss with the regulators, we'll work our way through those issues and we will announce it in good time," he said.

-abc.net.au

The official interest rate is expected to be lifted to its highest level in 12 years today and the Government warns it may be some time before homeowners get any relief.

Coalition treasury spokesman Malcolm Turnbull says the Prime Minister and Treasurer Wayne Swan are making the problem even worse.

"Their language they are using is so immoderate, so unmeasured, it's actually creating economic problems for us," he said.

"Only this morning I received a news alert from the Financial Times, Europe's leading financial newspaper, headlining about Australian inflation fears, based on Mr Rudd's comments of last night."

Federal Cabinet has approved the Government's election pledge to set up a superannuation-style savings scheme for first homebuyers, ahead of tomorrow's expected rise in official interest rates.

The home saver accounts will allow people to pay a lower tax rate on up to 10 per cent of their income.

The accounts were initially announced during the election campaign last year when Labor said it would forgo $600 million in tax revenue to help people save for their first home.

The Government now plans to invest $850 million over the first four years of the initiative.

Mr Swan says it is a long-term measure designed to improve housing affordability and is one example of the Government's efforts to reduce inflation.

"The pledge and the commitment that Kevin Rudd and our Government has made is to do everything we possibly can, using every level of policy to put downward pressure on inflation," he said.

"The inflation we're experiencing now has been on the march - on the march for at least two years."

He says the fight against inflation will be difficult, but can be won.

"We are working on short-term measures, we are working on medium-term measures and we are working on long-term measures," he said.

"This one is a long-term savings measure, but the sooner we get it up and running the sooner it will kick in."

Meanwhile opposition treasury spokesperson Malcolm Turnbull has raised another issue putting pressure on inflation - the Government's proposed changes to the industrial relations laws.

Mr Turnbull has called on the Rudd Government to guarantee that any changes to the laws will not cause any further inflation increase.

He says during the eleven-and-a-half years the Howard government was in power, inflation stayed on average within the 2 to 3 per cent target band set by the Reserve Bank (RBA).

Mr Turnbull says that was largely due to the Howard government's changes to industrial relations laws.

"[Treasurer] Wayne Swan and Kevin Rudd want to change our IR laws and fair enough," he said.

"They want to change them [but] can they guarantee they will not contribute to inflation?"

"Can they guarantee that interest rate rises in the future will not be the result of Labor's changes to IR laws."

He says during the eleven-and-a-half years the Howard government was in power, inflation stayed on average within the 2 to 3 per cent target band set by the Reserve Bank (RBA).

Mr Turnbull says that was largely due to the Howard government's changes to industrial relations laws.

"[Treasurer] Wayne Swan and Kevin Rudd want to change our IR laws and fair enough," he said.

"They want to change them [but] can they guarantee they will not contribute to inflation?"

"Can they guarantee that interest rate rises in the future will not be the result of Labor's changes to IR laws."

Mr Swan says underlying inflation is at its highest in 16 years, but he promises the Government will deal with it.

"I'll tell you what, we're up to that task, we're up to that task short-term, medium-term and long-term," he said.

He insists the tax cuts promised over the election will still be delivered, despite inflation.

-abc.net.au

It is part of the Government's plan to put downward pressure on inflation and encourage private savings through a superannuation style scheme for first home buyers.

The announcement comes a day ahead of the Reseve Bank of Australia (RBA) meeting to determine interest rates.

The accounts were initially announced during the election campaign last year when Labor said it would forgo $600 million in tax revenue to help people save for their first home.

The Government now plans to invest $850 million over the first four years of the initiative.

Mr Swan says the scheme has been revised by the Treasury Department and its estimated cost has increased.

"Now this is a scheme that's not for everybody. If someone is a high income earner or got quite a few assets this isn't going to work for them, but this is a scheme for people out there who battle to put away a modest deposit to get a toehold in what is a very difficult housing market," he said.

The accounts will allow people to pay a lower tax rate on up to 10 per cent of their income.

Prime Minister Kevin Rudd and his Treasurer met the deputy governor of the Reserve Bank (RBA) in Sydney today, in a discussion that is set to shape the Government's policy on tackling inflation.

In a written statement after the meeting, Mr Swan says it is critical the Government exercises restraint as it frames its first Budget - to send a clear message to the RBA it will do whatever it can to put downward pressure on inflation.

Mr Swan says he is committed to a new era of fiscal discipline and will now look for more savings beyond the $10 billion already promised.

He says Australia faces considerable economic challenges inherited from the previous Howard government, and warns it will not be easy to keep inflation in check.

But Opposition treasury spokesman Malcolm Turnbull says Mr Rudd should stop blaming the previous government for the current state of the economy and start governing.

Mr Turnbull says Mr Rudd should have met with the heads of the major banks instead.

"The people he should be talking to are the bank bosses and he should be doing what his Treasurer failed to do, demanding a detailed explanation of why those rate rises are justified," he said.

"If Wayne Swan had done that at the outset those rises probably wouldn't have occurred and if they had occurred, they would have been a lot less then they have been."

-abc.net.au

The four major banks have defied the Treasurer's warnings and increased their home loan rates independent of the Reserve Bank (RBA).

Opposition treasury spokesman Malcolm Turnbull says Mr Swan has shown no leadership on the issue.

"Wayne Swan has been treated like a mug by the banks. There is no question," he said.

"Again, it's a failure to act in an experienced and business-like way.

"What he should have done was demand that the banks provide a detailed justification for the increase in rates."

-abc.net.au

Treasurer Wayne Swan has issued a veiled threat to banks not to be greedy after a second major institution lifted mortgage rates independent of the Reserve Bank of Australia (RBA).

He will seek briefings from RBA and regulatory authorities on Tuesday in what appears to be a move to make sure that the banks aren't taking advantage of their customers.

The Australia and New Zealand Banking Group (ANZ) followed the lead of the National Australia Bank (NAB) on Monday, increasing mortgage interest rates.

ANZ had already announced an increase on some of its fixed rate loans but followed NAB's move to lift its standard variable interest rate on mortgages.

Both banks have blamed their decision to lift rates - independent of any change in the official cash rate by the RBA - on the global credit crisis.

And homeowners could be facing further pain when the RBA meets on February 5 to decide whether it should raise the official cash rate from its current 6.75 per cent.

The National Australia Bank (NAB) is the first to lift its variable mortgage rate in light of the mortgage crisis in the US, but it is unlikely to be the last.

The Federal Opposition's treasury spokesman Malcolm Turnbull has seized on the move, warning the Government's industrial relations changes are adding to the problem.

"The reality is that the Rudd Government is working to put prices up," he said.

But Treasurer Wayne Swan has hit back, saying he inherited a legacy of inflation.

"The parting gift of the previous government was elevated inflation for an extended period of time," he said.

Mr Swan has appealed to the big banks to consider the impact on struggling families before following the NAB's lead.

But Mr Turnbull says for a government that campaigned hard on the cost of living, Labor's done little to help struggling families since coming to power.

"What's happened since he's been elected, is we've seen petrol prices going up, interest rates going up," he said.

"What's Rudd got to say about it? What's Wayne Swan got to say about it? Nothing."

Mortgage holders are now nervously awaiting the outcome of next month's Reserve Bank board meeting.

-abc.net.au