High rates are not all bad says RBA

The Reserve Bank of Australia governor Glenn Stevens appeared at Senate committee on Friday. He said the central bank had set an expansionary setting in monetary policy during the GFC, but the worst did not come to pass and the economy went into a recovery quite quickly. "If the question is, would rates have been lower if fiscal policy was tighter … that's right," he said.

"The second question, is whether that is a better outcome. Not necessarily. The presumption of interest rate always being lower is always better, I don't think that so myself. I think that is often presumed and I don't think it should be presumed, but that is a separate debate."

Source: The Age