Australia’s Reserve Bank chief, Glenn Stevens says Australians are too pessimistic on the state of the country’s economy, Stevens reckons that we should be much more optimistic over the nations prospects.
Speaking at the American Chamber of Commerce in Australia luncheon in South Australia, Stevens described the nations better than expected growth figures as “quite respectable”. The reserve bank chief said that changes in the world economy present challenges that can easily be overcome.
Stevens said Australia is in a good position to tackle possible world recession sparked by the debt woes facing Europe. He said that economic indicators show that Australia has handled the global financial crisis of 2008 well ::::
“We live in a global environment of major uncertainty, not least because of all the things that are going on in Europe,” Reserve Bank governor, Glenn Stevens said. “Nonetheless, it has to be said I think that an objective observer that came to our country from elsewhere would surely see our glass as at least half full.”
But Stevens says that the Reserve Bank shouldn’t use interest rate cuts and ever increasing house prices to encourage a return to boom. He said that he doesn’t believe that the economy should be engineered via a “return to boom in household consumption, low savings, gearing up and so on”.
Australia’s economic growth surged 1.3 per cent in the first 3 months of 2012, more than doubling expectations, driven mainly by household spending, business investment and of course mining.