CANBERRA, Nov. 7 (Xinhua) -- The new monthly figures on new home loans across Australia is lower than expected as the central bank on Wednesday announced to increase the cash rate by 25 basis points to 6.75 percent, the 11-year high.

    According to new figures released on Wednesday by the Australian Bureau of Statistics, about 62,700 people secured owner-occupier finance during September, in seasonally-adjusted terms, which is a fall of 2.4 percent.

    Figures also show prices for established homes have risen 3.5 percent in the last quarter to be up almost 11 percent for the year.

    Melbourne, Australia's second largest city, has recorded the strongest gains, with the city's house price index increasing by 6.7 percent in the last three months.

    Melbourne is followed by Adelaide and Darwin, capital cities of the state of South Australia and Northern Territory, whose house price index rose by 5.1 percent.

    The central bank's decision of raising interest rates came as last month's strong inflation figures and other indicators suggestprice pressures are becoming overheated.

    This is the sixth such rise since the last election in 2004 and is the first interest rate rise during an election campaign.

    The six-week election campaign has entered the fourth week since Prime Minister John Howard last month announced the federal election will be held on Nov. 24.

    The move pushed the standard bank variable mortgage rate above 8.5 percent for the first time in 10 years.

    Howard on Wednesday apologized to borrowers for the latest interest rate rise, saying it would hurt a lot of people.