FED: Govt takes credit for anticipated interest rate cut

AAP General News (Australia)
08-24-2008
FED: Govt takes credit for anticipated interest rate cut

Finance Minister LINDSAY TANNER says if the Reserve Bank cuts the official cash rate
next month .. as expected .. it will show the Rudd government got its first budget spot
on.

Last week the RBA indicated quick action's needed to cut interest rates .. to prevent
a deep and persistent downturn in the economy.

Mr TANNER says the 22 billion dollar budget surplus is a crucial factor in the Reserve
being able to consider cutting interest rates .. but he denies there's a risk it will
slow the economy too much.

The finance minister's told Network Ten if the budget was in the same position as when
the former Howard government left office .. there'd be no way the Reserve Bank could contemplate
lowering interest rates.

AAP RTV jcd/af

KEYWORD: RATES TANNER (CANBERRA)

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