RBA's Macfarlane signals rates may head higher

AUSTRALIA - Reserve Bank Governor Ian Macfarlane on Wednesday delivered an upbeat view of the Australian economy, warned of a looming shakeout in property and signalled that the bank remains on course to raise interest rates once global uncertainties fade.

In a lunchtime address in Brisbane, Mr Macfarlane reaffirmed that doubts about the global economy may have stayed the RBA's hand in returning interest rates to normal levels, but the next rate move is still more likely to be up than down.