Interest rates start to rise again - from 3%

TREASURER Wayne Swan says the decision by the central bank to raise its cash rate will make it tougher for families but few would be surprised by the move.

The Reserve Bank of Australia raised the cash rate by 25 basis points to 3.25 per cent following its monthly board meeting.
A majority of economists had expected the RBA to leave the rate at its "emergency" level of 3.0 per cent for at least another month.
The bank cut the rate by 425 basis points between September 2008 and April 2009 in the heat of the global economic downturn.
"I do understand that today's decision by the RBA makes it tougher for families with a mortgage," Mr Swan said.