PRIME MINISTER
TRANSCRIPT OF THE PRIME MINISTER, THE HON P J KEATING, MP
ERINA FAIR, CENTRAL COAST, NSW
WEDNESDAY 15 AUGUST, 1994
J: today's cash rate rise, is it the last for this year?
PM: I think the main thing is the Government wants to see the recovery
remain sustainable. And, that means that we want to be able to
maintain low inflation and the way to do that is to keep a watchful eye
on inflationary pressures. And, I think, the fact that this is happening
around the world, in the United States, in Australia, is a very good
thing for a prolonged recovery, more jobs and lower inflation.
J: So, do home owners need to batten down the hatches?
PM: I don't think so. I think that some of this may flow through to housing
some, some. But, I think there is a very competitive housing market
now. The chance of all this three quarters of a point going to
housing rates, is pretty slim.
J: What's this going to do to business investment and employment
growth?
PM: Well, I think it will encourage the investing community to believe
inflation is truly in check, in Australia; that we'll maintain our
competitiveness; and, if anything, I think it will just encourage people
to believe the recovery will be longer.
J: With the economy growing faster than government forecasts, can we
expect another government financial statement later in the year?
PM: No, the Government brought a Budget down in May and the economy
is growing in the sort of, general, region of the Budget forecasts. But,
I'm happy to say that we're the fastest growing economy in the
Western World. The main thing is, though, we want low inflationary
growth and that's what today's decision is about.
2
J: Won't the rise in interest rates take some of the steam out of that
growth?
PM: No, because I think the profit share in the economy is so high, the
strength that underlies the business community now, for investment...
Remember this, we've had a recovery now for a couple of years I
think, for about ten or twelve quarters and yet the investment phase
is just coming. So, we've got all of that to enjoy.
J: But, there's pressure now on the Accord, won't that also create...?
PM: I don't think so. There's not a lot of pressure around the wage market
at the moment, we've just not long ago done a deal with the ACTU for
the bottom end of the workforce two lots of eight dollars. So, at the
moment the Australian economy is ticking over, in terms of wages and
inflation, very nicely. And, of course, most particularly with growth and
jobs employment. That employment growth we saw a week or so
ago 90,000 for the month and unemployment falling half a
percentage point is indicative, I think, of our capacity to maintain
reasonably strong employment levels.
J: Prime Minister, is Mr Hawke's book receiving the attention it deserves?
PM: Well, I said something about that yesterday and that is all I want to
say.
ends.