RBA says election no barrier to rate rise

The Reserve Bank of Australia (RBA) has announced that it won't hesitate to tighten monetary policy ahead of a federal election, and the next move in interest rates is more likely to be up rather than down. Glenn Stevens, RBA governor, said although there was growing confidence that the inflationary threat was receding it was too early to declare victory and the RBA maintained a tightening bias for monetary policy. Mr Stevens said that labour costs would be crucial to the outlook for inflation and interest rates.