Fed: Govt zeal to use surplus will harm $A, rates: economist

AAP General News (Australia)
02-28-2001
Fed: Govt zeal to use surplus will harm $A, rates: economist

By Jim Hanna, Economics Correspondent

CANBERRA, Feb 28 AAP - The federal government's readiness to use the Budget surplus
to fund new election-year spending will lower the Australian dollar and raise interest
rates, a leading economist said today.

Prime Minister John Howard yesterday indicated he was willing to spend much of the
forecast $4.3 billion surplus to lift his government's sagging popularity.

Mr Howard reassured nervous coalition backbenchers in the wake of this month's Queensland
and West Australian election results …