Home-buyers should brace for interest rate rises, Reserve Bank governor Glenn Stevens indicated yesterday as he declared the economy was recovering and the stimulus package had helped.
Australia's debt level was manageable and unemployment was unlikely to hit the peak predicted earlier this year.
But the recovery could be derailed if spending designed to stimulate economy activity was wound back too soon.
''I think it's a bit hard to claim that as of this moment there's too much growth in the economy, so I haven't really had a serious problem with what's occurred on the fiscal front thus far,'' Mr Stevens told the Senate Economics Committee inquiry into the impact of the $42 billion stimulus package.
''It's important these measures should be wound back over time but they're on track to do so."
For more, pick up a copy of today's Canberra Times