RBA chief sees low global rates for most of the decade ahead

Sydney

RESERVE Bank of Australia (RBA) governor Glenn Stevens expects global interest rates will be very low for "a good part" of the decade ahead and reiterated that low inflation gives local policy makers scope to reduce borrowing costs further if needed.

In a philosophical speech on Tuesday, Mr Stevens cast forward to some of the biggest forces that will affect the economy in coming years. He also briefly addressed the near-term outlook, reiterating that recent data pointed to improving prospects for industries outside mining and increasing employment, even though inflation has been weaker than expected.