RBA stays focused on inflation, despite ASX wobbles
Reserve Bank governor Glenn Stevens has dismissed concerns about recent falls in the Australian share market, saying inflation remains the RBA’s main concern.
His up-beat economic assessment in a speech in London overnight led to a rise in the value of the Australian dollar and increased expectations of a rise in interest rates.
Responding to a question about trouble on the Australian share market, Mr Stevens said simply that markets go up and down.
He said he expected little trouble for Australia because of the global credit turmoil, with the effects limited to a small rise in the costs of mortgage and business borrowing.
Mr Stevens says what the RBA is watching is inflation.
Reserve Bank governor Glenn Stevens says markets go up and down, but inflation is a constant concern. (File photo) (AAP: Norman Bailey)
“We have remained concerned about the outlook for inflation, which is likely to be uncomfortably high in the near-term,” he said.
He also said he expects the global economy to produce average growth this year after several years of above average growth.
