He refuted any claim of manipulation by the government about the difference in forecast growth between Treasury’s 2% and the RBA 1.5%, noting the IMF forecast 1.8% economic growth for Australia.
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Posts tagged as:
Economy
Ken Henry gives an upbeat view of the Australian economy
Stimulus will help economy: RBA boss
Reserve Bank governor Glenn Stevens has declared Labor’s ambitious fiscal stimulus of direct cash payments should help the Australian economy survive the current global turmoil.
The decline of the Australian dollar would also act as a shock-absorber for the economy, which will slow as the result of a flagging world economy, led by the US.
”The decline in the Australian dollar by about 20 per cent against a trade-weighted basket also amounts to a significant change for the trade-exposed sectors of the economy, though at the cost of some temporarily higher price rises.
Mr Stevens said that, given the international headwinds, the Australian economy would still be able to rely on the development of China.
Bail-out needs work: RBA chief
Speaking in Sydney today, Mr Stevens also called for a renewed focus on productivity in the real economy, which has fallen away in the past five years as financial engineering has grown.
”The Australian Government has announced a general guarantee of deposits as a precaution to allay any public anxiety over security of their savings,” the RBA governor said in a lunch-time address in Sydney, according to a copy of his planned speech.
”In the case of Australia at least, it is now hard to avoid the conclusion that underlying growth in productivity has slowed over the past five years, compared with what was seen through most of the 1990s and the early part of this decade.
Global Stock Markets: A Crazy Week
A week in which the Dow Jones Industrial Average managed to record both its largest single-day points increase (+936 points on Monday) and its second-largest one-day points decline (-733 points on Wednesday) since its start in 1896.
Governments around the globe launched unprecedented and concerted rescue operations for major banks in order to unfreeze short-term credit markets and avoid a collapse of the world’s financial system.
China story reaches an uncertain chapter
Only weeks ago it seemed China might provide an island of growth to hold Australia afloat while the rest of the world fell apart. China’s real estate market was slow, but it would recover because 12 million urban migrants needed new homes each year.
Meanwhile, as China goes from adding 50 million tones of steel production each year to possibly eliminating that much, Australia is getting its export act together.
Palmer tips cash drought as credit dries
Australia’s economy is caught between ‘two worlds’, says Gold Coast mining billionaire Clive Palmer. Mr Palmer, pictured, founder of Mineralogy which owns one of the world’s largest magnetite iron ore deposits, said Australia’s economy was feeling the effect of the global credit crunch, but continued to grow thanks to resource-hungry China. read more
Nothing Proposed Will Solve the Credit Crisis
As far as I have seen, no one has offered any solution to the credit crunch that makes any sense. Frankly, I am beginning to think there is no palatable solution. However, let’s look at the plans that have been offered to see what the problems are. read more
