Rates to rise to up to 0.5 percent

As a consequence of the latest decrease in the Australian dollar (down below US57c instigated by the US increasing interest rates), a rise of at least 0.25 and up to 0.5 percent in home loans is expected. This comes as economists have noted a slowing down of the Australian economy and a fall in consumer spending.

‘Dollar dive threatens home loans’, Steve Burrell and Matt Wade, The Sydney Morning Herald, 18/05/00, p 1.