As US mortgage default rates hit an all-time high, the Australian situation is 'different' - Costello
Australians should not be concerned about rising interest rates fuelled by a surge in mortgage defaults in the US, Treasurer Peter Costello has said.
US mortgage default rates hit an all-time high in the first quarter of 2007.
Mr Costello said he would continue to closely monitor developments in the US, but the Australian situation was different.
"There's been a large default (rate) in the United States and it's of concern to the Americans,'' Mr Costello told Macquarie Regional Radio today.
"The default rate in Australia is much, much lower than it is in the United States ... In fact, we have one of the lowest default rates in the world. But we do watch what happens in the American economy.
"It's the world's biggest economy and it can have effects here.''
Mr Costello said his primary concern in Australia was keeping unemployment and inflation down.
"We do like to keep an eye on the international developments but the important thing for us, really, is to keep inflation low, keep the prices down, make sure that we run strong economic management ... consistent with keeping people in jobs and people in homes and businesses successful,'' he said. "That's what we like to see.'' AAP
