PM says sorry for latest rate hike 

Prime Minister John Howard says he regrets the extra burden that will be placed on Australian families because of today's interest rate rise. 

Interest rates hit an 11-year high this morning when the Reserve Bank lifted them by 0.25 per cent to 6.75 per cent, marking the sixth rate rise since the last federal election. 

The decision is expected to be a defining point in the final two-and-a-half weeks of the election campaign given the backdrop of Mr Howard's 2004 pledge to keep interest rates at record lows. 

Today Mr Howard said he knew the decision would have negative impacts on borrowers. 

"They will be hurt by it, they will be affected by it, I know that, I sympathise with them," he said. 

PM Says Sorry For Latest Rate Hike