RBA now feeling relaxed

Full Transcript

So there are reasonable grounds at this stage, I think, to believe that the Australian economy will come through this difficult episode not unscathed but well placed to benefit from a renewed expansion. Things will be difficult over the next year, but, as I have said before, the long-run prospects for Australia have not deteriorated by as much as we may all be feeling just now. China’s emergence, for example, has not finished. China has slowed a lot recently, but its emergence has years to run and Australia will benefit from that. So we should not lose sight of that or of the other positives that we have. We can have confidence in our long-run future and in our demonstrated capacity to adjust to changing circumstances. If we retain all that, there is no reason for any downturn to be a deep one.