The central bank is ‘really in risk management mode,’ its chairman said.
Articles on federal funds rate
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Higher interest rates reduce demand for goods and services, which makes it harder for companies to raise prices. But there are risks as well.
The data shows a tricky balancing act for policy makers. Interest rates will need to rise but too quickly could squash the recovery.
Weak Australian inflation and housing credit data mean the Reserve Bank is unlikely to move on interest rates.
