RBA Governor Glenn Stevens said the current setting is “appropriate for the time being” with economic growth likely to be close to trend and inflation close to target all the while the global outlook remains “somewhat uncertain”. Notably, Stevens acknowledged the likelihood of a broad-based downturn ahead, saying global growth will “probably ease” over the coming year while expansion in China – Australia’s largest trading partner – is moderating as monetary conditions there become less accommodating. Commenting on inflation, Stevens repeated the now familiar refrain warning that annualized CPI readings may top 3 percent “for a few quarters” through to mid 2011 due to changes in tobacco taxes.
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