| Reserve Bank of Australia hints next interest rate move will be up |
| Date: 2010/9/25 Click: 1706 |
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The Reserve Bank of Australia (RBA) hinted on Monday, the next interest rate move will be up, as policy makers manage what they describe as a "robust economic upswing".
Speaking at a business luncheon, RBA governor Glenn Stevens said that while Australia's economic growth should be above trend next year, the low rate of inflation seen over the past two years was near its trough.
"We think the global economy will record reasonable growth over the coming year, though not as strong as the past year - a strength that, incidentally, surprised most observers," Stevens said.
"Of course, that central forecast could turn out to be wrong. Something could turn up internationally or at home that produces some other outcome."
He said the likely task ahead of managing a fairly robust upswing will clearly fall to monetary policy.
Stevens also said he expected growth to continue because of high export prices and "the largest minerals and energy boom since the 19th century".
"We think that means the fall in inflation over the past two years won't go much further," he said.
The next rate-settling RBA board meeting is scheduled for October 5. |
