Analysts say RBA testimony could mean rate increases, not cuts, lie ahead [UPDATED]

Testimony from the Reserve Bank of Australia (RBA)'s governor, Glenn Stevens, to the Australian House of Representatives Standing Committee on Economics has been interpreted by analysts as indicating less aggressive rate cutting expectations on the reserve bank's part than are being priced in by markets. In his testimony Stevens also drew reference to the Australian banking system's stable funding position and the absence of "abnormal" liquidity demands being made to the RBA.