More interest rate hikes, unrest

MACQUARIE Bank chief executive Allan Moss has tipped further increases in interest rates and warned the risk of a decline in global markets on a global scale because credit is real. The bank chief's prediction is on the back of a huge $ 34 billion tax cut campaign promise of the Coalition and following the signs farther in the United States this week that the credit crisis is far from completed. Economists have expressed concern that other tax cuts already in an economy increasingly force interest rates up. "Australian interest rates are headed, Mr. Moss said. "The credit market is working in the improvement of improvement, but they are relatively slow and placid there is a risk of a temporary setback. But we do the thought of the worst is over. "I think the real problem is the lack of transparency, investors do not really know where the contractors are the main issues." Silent on debtMacquarie has also been accused of lacking transparency. At a recent consultative meeting M! r. Press Moss refused to quantify the amount of the debt of the bank's balance sheet. In an interview with the Financial Times he responded to increasing criticism of the Macquarie model highly leveraged, especially in the United States where Jim Chanos of Kynikos Associates, the world's largest short-selling hedge fund, has Bruyants been a criticism of Macquarie. Mr. Chanos has said on several occasions that the Macquarie model works only cheap debt and rising asset prices. "The average leverage in our infrastructure fund is less than 60%, which is reasonably conservative for the high quality of these assets and are very high quality assets, with very, very reliable income streams, & quot; Mr Moss said. "Our actual observation, even in the last few months is that we have been able to refinance without difficulty and on good terms." The head of Macquarie also stated that if the conditions were been tightened, there was little scope for so-called vulture funds. "Most of the ! loans are performing rest, the most active are always successf! ul, so t here are not many opportunities available assets," said Moss. "The main feature is that the underlying equity markets globally is that there is still strong growth. "We hope that in the Asian time zone, which houses two-thirds of our business, good economic growth will continue as long as we can to a moderate degree view." Mr. Moss has also ruled Any relocation of the headquarters of Macquarie in London, which was under consideration. "The Asian time zone is where the action is for the whole world," he said. News.com.au gift cards
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