7 Apr 2008 - Rate rises dividing the nation

Tue, 8 Apr 08

7 Apr 2008 - Rate rises dividing the nation

The chairman of Coles Group Bill Wavish has written to both the Governor of the Reserve Bank and Treasurer Wayne Swan complaining that rate rises are "hollowing out" the economy with the resource sector booming and manufacturing and services suffering the effects. Mr Wavish indicated that is was quite noticeable that Queensland and Western Australia are booming states with Victoria and New South Wales suffering. In testimony to the Economics Select Committee Governor Stevens indicated that while there were diversions between QLD and WA versus the other states this had stabilised and "if anything" the gap closed in the last twelve months.