Fed:Need new era of fiscal decipline to combat inflation: Swan

AAP General News (Australia)
12-18-2007
Fed:Need new era of fiscal decipline to combat inflation: Swan

Federal Treasurer WAYNE SWAN says a new era of financial discipline's needed to help
combat the challenge of rising inflation pressures.

And he says it's not just governments .. but ordinary families than need to be careful
with their budgets.

Mr SWAN says there's been upward pressure on interest rates from the inflation legacy
the Labor government's inherited.

He says the government needs to put maximum downward pressure on inflation .. and therefore
maximum downward pressure on interest rates in the long term.

He says the government must also address the two things stopping investment in the
country .. skills shortages and infrastructure bottlenecks.







The Reserve Bank is due to release the minutes of its December 4 board meeting today.

In a brief statement the day after it decided to leave interest rates unchanged ..

it repeated its concern over the inflation outlook .. and economists are tipping another
rise after its next meeting in February.

AAP RTV cb/rl/af/bart

KEYWORD: ECONOMY SWAN (CANBERRA)

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