Fed: OECD says rate rise likely next year

AAP General News (Australia)
12-21-1999
Fed: OECD says rate rise likely next year

CANBERRA, Dec 21 AAP - Australian interest rates were likely to rise by around one
percentage point in the next year, an OECD spokesman said today.

"The financial markets have priced in an increase of about one percentage point in
the cash rate over the next year and that doesn't seem too unreasonable to me," the spokesman
from the Organisation for Economic Cooperation and Development's Australia desk said.

He added that Australia's unemployment rate could drop as low as six per cent but warned
continued strong growth in domestic consumption could also lead to the increase in interest
rates.

Australia's official interest rate was increased by 0.25 per cent to 5.0 per cent on
November 3, 1999.

AAP eg/arb

KEYWORD: OECD AUST (CARRIED EARLIER)

1999 AAP Information Services Pty Limited (AAP) or its Licensors.