FED: Howard refuses to speculate on interest rate cuts

AAP General News (Australia)
04-29-1999
FED: Howard refuses to speculate on interest rate cuts

CANBERRA, April 29 AAP - Prime Minister John Howard today said low interest rates had
improved the standard of living in Australia, while refusing to say whether there was room for
another rate cut.

Mr Howard said latest figures showing a fall in the cost of living were welcome.

"I never speculate about the future level of interest rates, never," he told Adelaide radio
5AA.

"Interest rates are set from time to time by the Reserve Bank but I never publicly
speculate, I never say they should be higher or lower.

"The only thing I ever talk about are the general economic conditions that influence what
in turn determines the level of interest rates.

"But the day to day level of interest rates is a matter for the Reserve Bank, I merely
remark that they are the lowest now they have been for 30 years."

He said low interest rates had allowed people to spend more money on entertaining and
holidays.

"All of those things mean that the general living standard of the average wage and salary
earner is a lot higher now than it was a few years ago," he said.

The introduction of the federal government's 30 per cent private health insurance rebate on
January 1 triggered a 0.1 per cent fall in the consumer price index (CPI) in the March
quarter.

The result slowed the annual inflation rate to 1.2 per cent - the 10th consecutive quarter
where it remained below the Reserve Bank of Australia's comfort zone of between two and three
per cent.

AAP rmm/mfh/bm

KEYWORD: ECONOMY HOWARD

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