Guy Debelle, assistant governor of the Reserve Bank of Australia, said:
- RBA is confident of achieving and possibly exceeding the economic outlook for the latest government budget, but there are external risks that may hurt expectations.
- The bank has become more confident about the domestic economic recovery.
- Domestic demand exceeded GDP growth, growing by 3.25%.
- The growth in domestic demand gives us confidence in our expectations for GDP growth over the next two years.
- Fiscal stimulus in the United States has not yet fully affected the economy.
- The tightening of monetary policy in the US more than expected could lead to the decline of the Australian dollar, which will help in rising inflation along with domestic economic growth.
