“Yesterday’s interest rate hike shows that the people of Bradfield are now paying the price for Labor’s reckless spending,” Paul Fletcher, Liberal candidate for the seat of Bradfield, said today.

Since coming to power in late 2007, the Labor government has spent without restraint, borrowing huge amounts of money to do so.

“Now the chickens are coming home to roost – with interest rates starting to rise.”

The new rate increase will hit Bradfield families hard.

According to ABS data, around a third of households in Bradfield have a mortgage.

For a family with a $400,000 home loan, the interest rate increase of a quarter of a percent represents an increase in mortgage repayments of around $1,000 a year.

“My great fear is that this is only the beginning,” said Mr Fletcher.

“While families and small businesses carefully manage their budgets, the Labor Government continues its reckless spending spree.”

“Both Kevin Rudd and Wayne Swan must take responsibility for this rate rise due to their refusal to pull back on the stimulus spending.”

“That means the people of Bradfield had better brace themselves for further interest rate hikes ahead,” said Mr Fletcher.