InterPrac Leasing Newsletter-November 2004

Interest rates have remained steady in the past month, but are expected to rise shortly as domestic spending continues to grow.

Latest figures from the Australian Bureau of Statistics show that the import / export gap has now blown out to $ 2.1 billion, with imports of non-specified consumption goods up a whopping 10% in the past quarter.

One of the main reasons that interest rates haven’t yet climbed is the relatively benign inflation rate, still at the lower end of the Reserve Bank’s 2-3% target. However, the next quarterly figures, to be released in December, will reflect current soaring oil prices around the world, and ANZ Bank’s Chief Executive, John McFarlane, expects a quarter percent rise in the New Year to be followed by a similar rise in mid-year, when US rates are also tipped to go up.

Upwards pressure on rates is reflected around the region; NZ’s Reserve Bank has just increased interest rates for the 6^th time this year, and even China’s People’s Bank has just raised rates for the first time in 9 years.

Luckily, loans taken out through InterPrac's Leasing department are at a fixed rate for the term of the loan, which can be up to 5 years. By purchasing their vehicles and equipment sooner rather than later, your clients can protect themselves from interest rate rises and save on charges across the term of a loan.

Yours Sincerely

Djamel Chettibi

National Leasing Manager

InterPrac Finance Services Pty Ltd

Tel: 1800 700 666

Fax: 1300 361 587

djamel.chettibi@interprac.com.au