RBA says downturn mild, interest rates to move higher

RBA Governor, Glenn Stevens, has spoken before a Senate Economics Reference Committee in Sydney this morning, sounding midly hawkish. He repeated that interest rates will move off their low level as Australia emerges from the global economic downturn. He said that by standards of past weakness, this has been a “mild downturn”. He went on to say that both monetary and fiscal policly will need to be unwound as private demand rises.