Mr. Glenn Stevens the Governor of the Reserve Bank of Australia said today in his testimony before House of Representatives Committee that the economy has less scope than previously estimates for strong growth that doesn't generate faster inflation. Stevens added that monetary policy shouldn't remain very expansionary.

However, the RBA governor said interest rates still below normal as borrowing costs are between 50 and 100 basis points which is below what the central bank considered as normal. Mr. Stevens and his colleagues raised the benchmark interest rates by 0.75% in three months to be 3.75%, making Australia the first country in the world to raise borrowing costs three times in 2009.