Australia's RBA: Higher interest rates maybe appropriate soon
Australia's Reserve Bank has hinted that higher interest rates maybe inevitable to contain the jump in consumer prices, authorities said.
In the minutes of the 3 May meeting, RBA bank authorities led by Governor Glenn Stevens agreed "if economic conditions continued to evolve as expected, higher interest rates were likely to be required at some point if inflation was to remain consistent with the medium-term target."
According to the minutes released today in Sydney, bank authorities saw the mildly restrictive stance as appropriate.
Nevertheless, the frozen benchmark rates pegged currently at 4.75 percent after seven adjustments has been an awry setting, too for the continuous mining boom that creates more jobs in the Australian economy.
"Members noted that the significant divergences between different sectors of the economy presented challenges for policy-making, but that monetary policy had to be set for the needs of the overall economy," the minutes showed.
"Members noted that the significant divergences between different sectors of the economy presented challenges for policy-making, but that monetary policy had to be set for the needs of the overall economy," the minutes showed.
The government forecasts mining investment of A$76 billion next fiscal year, spurring companies to hire workers and prompting the RBA to predict the country's unemployment rates will fall to 4.25 percent by December 2013. Australia recorded its biggest annual job growth on record last year before hiring cooled. The expected job hiring will compensate for the slow consumer demand.
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