| Australia's interest rates right at present: RBA Governor |
| Last Updated(Beijing Time):2012-02-24 09:45 |
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Australia's interest rates are about where they should be, Reserve Bank of Australia (RBA) Governor Glenn Stevens said on Friday.
The Governor told the House of Representatives Standing Committee on Economics at its public hearing in Sydney on Friday that he was a little surprised when banks passed on the RBA's cash rate cut in full in December 2011.
"Overall, as of present, it is about where we should be," the governor said.
"These rates are roughly where we think is appropriate for the circumstances we face."
Asked whether banks were over-profitable, Stevens replied: "If I have to choose between unprofitable ones and profitable ones, I' d choose the latter".
"You only have to look at the dimension of the bank problems in Europe to see that we don't want banks that can't earn a good return," he said. |
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