1.   High interest rates boost corporate borrowing costs, slow consumer spending and tarnish the appeal of equities.

2.   Lower rates would tarnish the appeal of some assets, including bonds, denominated in the Australian currency.

3.   Low rates tarnish the appeal of deposits and bonds denominated in the yen.

4.   NEW ZEALAND shares fell, as bonds declined, pushing yields higher and tarnishing the appeal of relatively high yielding stocks such as Telecom Corp.

5.   New Zealand bond yields rose tarnishing the appeal of dividend yields available from equities.