Saturday, February 19, 2005

Australian Home Loan Rates

The Reserve Bank governer Ian McFarlane warned Australians that interest rates will rise sooner than later. He pointed to the trend in other countries for interest rates to rise rather than fall. However currency traders interpreted this to mean that there won't be an interest rate rise in March so the Australian dollar fell.

Talking to the House of Representatives economic committee, he also explained what is required of the Government to control the slowing economy. He expressed concern that Australia's economy may have peaked and that changes need to be made to permit the economy to expand further. Two areas that were singled out were taxes and welfare reform.