The Reserve Bank Governor Glenn Stevens clearly comes from a different planet than Tony Abbott and Joe Hockey.

The Opposition Leader and his jovial Treasury spokesman have been talking for months as if the Labor Government is leading us towards economic rack and ruin. Yet this morning the independent and impartial Governor described the national economy as at a “pretty good starting point” to face the uncertain global economic conditions, as households continue to save more and cut back on debt.

According to Mr Stevens when he appeared before the House of Representatives Economic Committee, corporate balance sheets are in good shape, Australia’s terms of trade are at a record high and unemployment remains low.

“Inflation bears watching, but we can keep it under control.

“Our banks are strong, our currency is sound and our sovereign credit position is in the international top tier.

“Consumer caution, while making life hard for the retail sector, is also building resilience in household balance sheets.

“If we are entering another period of weaker international conditions, this is a pretty good starting point from which to do so.”

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Peter Fray
Peter Fray
Editor-in-chief of Crikey
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