Reserve Bank of Australia Governor Glenn Stevens indicated the nation’s currency will probably decline further next year and pushed back against calls for near-term interest rate cuts because the economy is performing as the central bank forecast.
“I don’t think we see many people at all saying ‘look, the cost of money is too high, or I can’t get money,’” Stevens said in an interview with the Australian Financial Review published today. “I don’t think that’s really the problem now.”
Stevens said Australian inflation, economic growth and employment levels are running close to rates the RBA predicted a year ago, according to the paper. He said the central bank has tried to deliver a message of “stability and predictability” in setting monetary policy as a way of underpinning confidence.
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