Reserve Bank of Australia (RBA) governor Glenn Stevens has reassured Asian investors about high Australian property prices and levels of household debt, while acknowledging the uneven nature of the country's economy.
The governor used his address to the Credit Suisse 15th Asian Investment Conference 2012 to point to the contingency of many facets of the Australian economy on the situation in Europe.
He explained that "periods of anxiety" for the global economy have had an impact on Australia as well as the rest of the world, but urged investors to continue to view the country as a positive place to do business.
Australia still "offers rates of return that are high by international standards, even though they are low by Australian historical standards", argued the RBA chief.
Nevertheless, Mr Stevens acknowledged the need for structural change in the economy following the trauma of the recent economic crisis.
The RBA has been under increasing pressure to alter interest rates in order to boost the economy, but it insists the recovery is underway without this kind of artificial stimulus.
Posted by Steve Douglas
