SYDNEY, March 29 (Reuters) - The Governor of the Reserve Bank of Australia Glenn Stevens said on Monday that interest rates had been too low and could not remain at previous levels.
'If you look back when the economy was stable and we had low inflation on the cash rate, that is the rate we decide on, the rate has been in the average of 5 percent,' Stevens said in an interview to Channel 7.
He said the relationship between the cash rate and mortgage rates would decide normal level of rates. ((Australia newsroom; +61 2 9373 1800)) Keywords: AUSTRALIA ECONOMY/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'If you look back when the economy was stable and we had low inflation on the cash rate, that is the rate we decide on, the rate has been in the average of 5 percent,' Stevens said in an interview to Channel 7.
He said the relationship between the cash rate and mortgage rates would decide normal level of rates. ((Australia newsroom; +61 2 9373 1800)) Keywords: AUSTRALIA ECONOMY/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.