In the Australian Financial Review this morning, a bit of a take on Reserve Bank of Australia (RBA) governor Stevens’ comments Tuesday evening (headlines are here):

  • Stevens indicated that interest rates may need to stay low for years because of the weak economy
  • Said though, this is only possible if property prices are kept in check
  • Stevens’ speech suggests the RBA is moderating its outlook for 2015
  • Said faltering jobs and wages growth meant it would be “a couple of years” before inflation triggered rate hikes
  • Likely monetary policy would stay stimulatory “for some time yet”

More at the article (gated): Interest rates may stay low for years: RBA

glenn stevens hands