RBA has ‘flexibility’ on OCR: Stevens
(12 February 2016 – Australia) The Reserve Bank of Australia’s (RBA) governor had indicated that it has room to cut interest rates again, with inflation unlikely to be increase dramatically over the next two years.
The central bank’s governor Mr Glenn Stevens says the RBA, which earlier this month, left the official cash rate at a record low two percent, is observing the uncertain global markets the surprising strength in the local labour market.
"With inflation unlikely to cause a problem by being too high over the next year or two, the statement after the recent meeting indicted that the board retains the flexibility to ease further, should that be helpful," Stevens told the House of Representatives economics committee in Sydney.
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