The economic environment remained supportive of overall loan growth in 2005, while the rate of growth in the home loan sector moderated toward a more sustainable level.

Despite the inherent volatility of some of its core lines of business, Macquarie's overall earnings growth has been consistent and strong.

These results are pleasing in that good revenue growth was achieved in the current low inflationary environment but many businesses experienced cost increases in excess of inflation, due to start-up costs of increasing capacity and fuel price rises.

As we continue to monitor the changing economic environment, including housing-related metrics, employment, real wage growth and demographic trends, we have confidence in our future performance as the outlook for home-improvement spending remains strong.

In general, a rising rate environment slows down growth, so most companies are not going to go as good as when rates are low.

These decisions must also protect the environment and ensure broad-based economic growth.