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Article: Companies ride out rise.(rise in interest rates)(Brief Article)
- Article from:
- Australasian Business Intelligence
- Article date:
- March 2, 2005
- Author:
CopyrightCOPYRIGHT 2005 News provided by Comtex. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mar 02, 2005 (The Australian - ABIX via COMTEX)
Australian companies are not expected to be greatly affected by a rise in interest rates. The Reserve Bank announced an increase of 0.25 per cent in interest rates on 2 March 2005. Citigroup said that Australian companies are in a good position to deal with the rise. Gearing levels are at their lowest level in 15 years in early 2005. Average corporate debt levels are 40 per cent of shareholders' equity, compared with 60 per cent in the early 1990s. However some, particularly manufacturers and retailers, felt that the rate rise would increase costs and slow demand.
Publication Date: 3 March 2005
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