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Australia economy has room to grow faster: RBA

Published on Jul 3, 2014 10:32 AM
 
A woman walking past the Reserve Bank of Australia (RBA). Australia's top central banker said on Thursday there were signs business investment was picking up and he saw room for the economy to grow faster in the next few years, although he cautioned the outlook would remain uncertain for some time yet. -- PHOTO: BLOOMBERG

HOBART (Reuters) - Australia's top central banker said on Thursday there were signs business investment was picking up and he saw room for the economy to grow faster in the next few years, although he cautioned the outlook would remain uncertain for some time yet.

Reserve Bank of Australia (RBA) Governor Glenn Stevens also said the new "normal" level for interest rates would likely be lower than in the past.

Stevens was answering questions after giving a speech on the economy Stevens reiterated the central bank's view that the Australian dollar was overvalued, adding he was puzzled why the US dollar was not higher given that the Federal Reserve was winding down its quantitative easing programme.

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