Glenn Stevens to gun down inflation
INTEREST rates are unlikely to fall despite the volatility engulfing global markets, Reserve Bank governor Glenn Stevens has signalled.
Delivering a blow to debt-laden households and struggling retailers, Mr Stevens yesterday indicated that Australia's central bankers would not budge from their hawk-like position on the threat of inflation.
Mr Stevens said that if it were not for the strength of the Australian dollar, which climbed half a cent against the greenback to US104.84c after he spoke, inflation would be a greater threat.
HSBC chief economist Paul Bloxham said Mr Stevens' comments signalled that inflation remained the Reserve Bank's primary concern.
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