RBA's Stevens: Recent economic & financial trends

In the speech 'Some observations on recent economic and financial trends' given on 22 February Glenn Stevens of the RBA said inflation in Australia is well contained and inflationary risks are balanced, yet interest rates are still more likely to rise than fall.

"An assessment of balanced risks, around a forecast of 2.5 to 3 percent inflation, means that it is more likely that a surprise will take inflation above the target of 2-3 per cent than below it," said Stevens.

"Hence, a rise in rates is

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