Fed: Howard says interest rates still historically low

AAP General News (Australia)
08-01-2006
Fed: Howard says interest rates still historically low

CANBERRA, Aug 1 AAP - Prime Minister John Howard says interest rates will still be
historically low, even if the Reserve Bank lifts rates as expected today.

The Reserve Bank board is meeting today to discuss a possible rise, following last
week's inflation blowout.

The decision will be announced at 9.30am (AEST) tomorrow.

Mr Howard said he hoped rates would not rise.

"I never like to see interest rates go up. That's human nature," Mr Howard told Southern
Cross Broadcasting.

He said the average mortgage rate on a house over the 10 years of his government was
about 7.15 per cent - five per cent lower than under the Keating Labor government.

He accepted that the burden was higher now as houses were more expensive and people
were more heavily in debt.

"Everything's relative and I do accept that," Mr Howard said.

"This is an interest rate sensitive country but we have to nonetheless make the very
legitimate point that our interest rates are still by recent historical standards low.

"As to what happens today and will be indicated tomorrow either way, well that's a
matter for the Reserve Bank. I don't know what its decision will be.

"There's nothing really to be gained by my speculating this close to the decision."

AAP mfh/maur/nf

KEYWORD: RATES HOWARD

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