from an economic point of view, the reserve don't want to instill confidence in consumers and don't want people spending money they don't have.. which is what got them into the mess in the first place..
the issue of people holding mortgages being hurt is a social and a political problem, not an economic one and borrowers are suffering more due to over-paying for their housing assets, than due to the rates of interest which are actually quite low from an historical perspective..
