RBA chief confident of economic conditions

Glenn Stevens, the governor of the Reserve Bank of Australia (RBA), is confident of economic conditions whilst conceding that inflation is likely to rise in 2008. Stevens hinted that a rate rise in July was unlikely, whilst describing the combination of strong growth, strong employment, lower inflation and moderate wages growth as “a great set of outcomes”. Stevens views the threat of inflationary pressures as a medium term concern for the central bank, as continued growth in demand will place further inflationary pressure.