Govt and RBA reaffirm policy

Treasurer Peter Costello and Reserve Bank of Australia governor Glenn Stevens, who began his term on Monday 18 September, have reaffirmed the government's agreement with the RBA on monetary policy.

Mr Stevens succeeds long-serving governor Ian Macfarlane.

In statement from Singapore, Mr Costello said that he and Mr Stevens had agreed it was timely for the government and bank reaffirm and update their mutual understanding of the operation of monetary policy in Australia.

"I now release the third

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