- Says economic performance has been remarkably good given the global background.
- Higher household savings, caution on debt, stable home prices all adding to resilience.
- Markets not signaling concerns about Australia’s solvency, points to record low yields.
- Australia has scope to use macroeconomic policy if global economy seriously worsens.
- Says Aussie $ would fall, provide stimulus, if there were a global crisis.
- Australian banks well able to fund themselves, less vulnerable to global panic.
- Sees less risk of an imminent slump in domestic home prices than five years ago.
- Says recent Chinese’s data suggest normal cyclical slowdown, not sudden slump.
- Chinese data consistent with GDP growth of 7 to 8 percent., industrial output growth around 10 percent.
- Says he’s confident Chinese authorities are able and willing to stimulate economy as needed.
Aussie $ trading consolidating around the 1.0280 level now.
