The Reserve Bank of Australia said rising household savings are likely to take pressure off inflation if cautious spending habits among the country’s consumers continue. This suggests the central bank is in no rush to raise official interest rates.
The RBA remained upbeat overall, giving little attention to recent signs of a slowdown in parts of the economy, instead staying focused on the medium-term task of managing a resources boom that is expected to drive economic growth faster in 2011.
(Source: The Australian)