Fed: Economic growth picked up: Macfarlane=2

AAP General News (Australia)
08-18-2006
Fed: Economic growth picked up: Macfarlane=2

Reserve Bank governor IAN MACFARLANE says interest rates are more likely to go up ..

rather than come down in coming months.

Mr MCFARLANE'S giving evidence for the last time to the House of Representatives economics
committee .. before his retirement next month.

He says it's clear the May interest rate rise .. and higher petrol prices .. haven't
knocked around the economy too much.

Mr MACFARLANE says the bank's recent three increases in interest rates are still working
their way through the economy.

He says while consumers haven't gone into their shell .. they've certainly slowed their
spending down .. and may slow it by more.

AAP RTV/sw/sb/bart

KEYWORD: RBA MACFARLANE 2 CANBERRA

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