Financial Times FT.com

Australia treasurer tries to avert rate rise

By Elizabeth Fry in Sydney

Published: October 26 2007 17:16 | Last updated: October 26 2007 17:16

Peter Costello, the Australian treasurer, sought on Friday to dissuade the country’s central bank from raising interest rates, arguing that Australia would face a financial “tsunami” should China ever float its currency.

The government of John Howard, prime minister, which is trailing the opposition Labor party in the polls, faces the prospect of a pre-election rate rise when the Reserve Bank of Australia meets on November 6. The election is on November 24.

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