The likelihood of an interest rate rise has sparked fresh political argument about the eventual outcome of the Government's plan to lower inflation.
Prime Minister Kevin Rudd is warning there are tough times ahead and some Australians will feel pain from efforts to fight inflation.
But he believes the Government's five-point plan to fight inflation will succeed.
"We can get through this on that basis of that approach, but it's not going to be easy," he said.
The Reserve Bank board meets today and it is widely tipped that interest rates will again be raised.
MPs like Amanda Rishworth, the Member for Kingston in South Australia, are letting their constituents know of possible effects of the plan.
"I'm certainly making them aware of the pain that can come," she said.
The Government says higher interest rates and its fight against inflation will slow the economy, but the Opposition's treasury spokesman Malcolm Turnbull can not understand why the Government does not admit the policies will lead to higher unemployment.
"They are not being fair dinkum with the Australian people," he said.
"They are rattled, they are nervous, and they are not telling the truth."
Mr Rudd says the Government's objective is to maintain as full a level of employment as possible.
Source: By Australian Broadcasting Corporation
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