The Reserve Bank of Australia said in the minutes released today for October's meeting when it hiked rates by 25 basis points to 3.25% that there is no need for low rates as this could threaten inflation rates and result in economic instability.
Concerning inflation, the RBA said that it may accelerate by 2011 yet is gradually easing on the near term. They also added that the recent rally in the Australian Dollar may help contain inflation rates.
In addition, the bank continued to highlight the fact that the effects from the stimulus plan started to fade yet investment, consumer spending and exports were picking up. Recent data showed that consumer confidence was inclining to reach the highest level in two years this month which contributed to increasing retail sales and falling unemployment rates that reached 5.7% in September from 5.8% in August marking the first decline in five months.