Australia Economy Essay

980 Words2 Pages

Argument 2
At present, Australia domestic faced economic stagnation, rising unemployment and other problems; as regards the external environment, marked decline in iron ore prices, weak aggregate demand also brings challenges for Australia's economic recovery. Glenn Stevens, the Governor of RBA stated, “A lower exchange rate now is likely to be needed to achieve balanced growth in the economy.”
Stevens has repeatedly hinted that the Australian dollar devaluation is good for achievement of the national economy "rebalancing”. Depreciation can continue to boost the service, construction and agricultural industries, which can offset a slowdown in mining. With the mining investment boom now over, it is vital that other industries gather momentum. Service industries that Australia traditionally excels in are an important part of …show more content…

The RBA monetary statement in April stated that, "The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market." Which show their concerned about the booming property market in Sydney. Unreasonable prices and investor speculation brought the housing bubble to Sydney. Current Reserve Bank left interest rates unchanged mainly taking into account rising house prices in Sydney, for which the Reserve Bank and other regulatory agencies corporate to curb the property market risk, provide space for interest rate cuts. CoreLogic RP Data highlights fears building about a potential housing bubble in Sydney in research. According to CoreLogic RP Data’s home price index, dwelling prices in Australia's biggest city rose by 3 per cent in March and almost 14 per cent over the year, however in rest of Australia the property market is quite soft as those annual gains range from minus 0.8 per cent in Darwin to 5.6 per cent in

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