SYDNEY, Dec 10 (Reuters) - The next move in Australian interest rates was still likely to be upward, a top central banker said on Monday, although that did not rule out a cut if it proved necessary.
Speaking at a Bloomberg event, Reserve Bank of Australia (RBA) Assistant Governor Christopher Kent was asked about a recent shift by financial markets to price in a small chance of a rate cut next year following soft economic data.
Kent said the market move was "modest" and it was best not to overreact to one quarter's data. The outlook for unemployment and inflation was still positive, although progress on reaching the bank's targets would likely be gradual, he said.
Asked about the housing market, Kent said there was a risk that banks might tighten credit unnecessarily because of scandals engulfing the industry.