“It is still lower than at any time in Labor’s 13 years in office,” he said.

Mr Bartlett said there were three factors contributing to the rise in interest rates.

“The economy is growing very fast, inflationary pressures are building up and the price of fuel and the impact of the drought on fruit and vegetable prices is increasing.”

But Mr Bartlett said he doesn’t think the rise will have an effect at the polls.

“I think most people can compare it with the exorbitant rates reached under Labor,” he said.

Meanwhile, Labor candidate Bob Debus said yesterday’s increase alone would add $34 a month to the typical mortgage in Macquarie, and meant average local mortgage repayments had risen by $199 since the 2004 election and by $326 in 10 straight rises since 2002.

“These payments are now eating up 24 per cent of the family income,” Mr Debus said.

“[How can] Mr Howard say ‘working families in Australia have never been better off’ when it’s so hard to make ends meet?”