Financial Times FT.com

Energy Security

Australia’s top banker allays oil price fears

By Raphael Minder in Sydney

Published: August 24 2006 22:21 | Last updated: August 24 2006 22:21

The world economy will not face a serious inflation problem even if there is a further significant increase in the price of oil, the governor of the Reserve Bank of Australia said on Thursday.

Ian Macfarlane, whose 10-year tenure makes him one of the world’s longest serving central bank chiefs, said in an interview with the Financial Times that he expected inflation to remain under control even if oil rose above its recent peak of nearly $80 a barrel.

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