Fed: Federal treasurer won't speculate on interest rate rise

AAP General News (Australia)
04-03-2007
Fed: Federal treasurer won't speculate on interest rate rise

CANBERRA, April 3 AAP - Federal Treasurer Peter Costello says he won't speculate on
the likelihood of another interest rate rise ahead of the today's meeting of the board
of the Reserve Bank of Australia.

Increased consumer spending and improvement in the housing market has fuelled speculation
that the RBA will lift interest rates for the fifth time since the 2004 federal election.

Mr Costello says he won't speculate on future movements but it is important to keep
inflation low.

"If we keep inflation low we keep interest rates low and the importance of keeping
inflation low is to make sure that economic growth continues," Mr Costello told the Nine
Network.

"We've had a very very strong run of economic growth the longest ever, ever recorded
by Australia and the task is to make sure that we keep growing and we stay out of recession
because that's how we save people's jobs."

"I'm not forecasting any movement in interest rates one way or another... this is an
independent matter done by a bank board which I have appointed which is independent. I
don't comment on future movements I don't even speculate about them," he said.

AAP sld/sco

KEYWORD: ECONOMY COSTELLO

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