Fed: Credit squeeze could push up rates: Symonds

AAP General News (Australia)
08-15-2007
Fed: Credit squeeze could push up rates: Symonds

Aussie Home Loans chief JOHN SYMOND says the thunderstorm brewing in the international
credit sector .. could force lenders here to lift interest rates.

He says if it becomes more expensive for Australian financial institutions to borrow
money from overseas .. due to the fallout from the high risk mortgage crisis in the United
States .. they'll have to pass the cost on to consumers.

Mortgage lenders have already passed on last week's official rate rise .. and Mr SYMOND
says if the storm really hits .. rates could trickle up again .. regardless of what the
Reserve Bank does.

He says non-traditional lenders will be hardest hit by a credit squeeze .. but banks
won't be immune.

AAP RTV pj/sb/jmt

KEYWORD: RATES AUSSIE (CANBERRA)

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