FED: Howard says rate rise not due to GST = 2

AAP General News (Australia)
02-02-2000
FED: Howard says rate rise not due to GST = 2

Mr Howard said there was wide speculation that the Federal Reserve in the United States
would lift interest rates by "half of one per cent or a little less in the next 24 hours".

"Against that background the governor believed that this adjustment was necessary but
it's an adjustment that still leaves the average home mortagee $266 better off than two
years ago," he said.

"The bottom line is that even after this, interest rates in Australia were dramatically
lower than when Labor left office in March 1996."

Mr Howard said the Reserve Bank move did not suggest the economy was overheating.

AAP ch/sc/sk/bwl

KEYWORD: RATES HOWARD 2 MURWILLUMBAH

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