Australia will weather crisis: RBA

Staff Reporter Thursday, 20 Nov 2008 1 minute read

The outlook for the economy has deteriorated but is not as bleak as some commentary suggests, Reserve Bank governor Glenn Stevens has assured.

Speaking at a dinner last night Mr Stevens conceded that Australia faced difficult times and growth was likely to be “at quite a slow pace” for a while but said prospects had not deteriorated “to the extent that might be suggested by some of the gloomy talk that is around”.

Mr Stevens said policy makers and regulators would need to “stand ready to act promptly” when needed but warned Australia should not abandon its well-established policy frameworks that have positioned Australia so strongly.

“If businesses remain focuses on the long-term opportunities; if markets and commentators do the same; if banks remain willing to lend on reasonable terms for good proposals; if governments are able to so order their affairs as to continue supporting worthwhile...public investment...then Australia will come through the present period,” Mr Stevens said.

Published: 20-11-08