Fed: Commodity prices facing upward pressure: Macfarlane

AAP General News (Australia)
12-08-2003
Fed: Commodity prices facing upward pressure: Macfarlane

Reserve Bank governor IAN MACFARLANE says all commodity prices are under upward pressure.

Mr MACFARLANE, giving evidence to a Housze of Representatives economic committee, says
the pick up in the global economy will feed into commodity prices.

He says the world economy is picking up and that's going to start to feed through to
Australia, and rural exports will pick up.

He says when the world is weak and commodity prices are weak, the Australian dollar
falls somewhat.

But Mr MCFARLANE says when the world is strong, commodity prices rise and the Australian
dollar rises -- so it takes out some of the variability in export receipts.

AAP RTV sw/lma/rp

KEYWORD: RBA COMMODITIES (CANBERRA)

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