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Pointing once again to the strength of the local banking sector, the governor of the RBA, Glenn Stevens, said Australia was "well placed" for a recovery from the current turmoil.
In his remarks to the Canadian Australian Chamber of Commerce Canada this morning, Stevens spoke about the parallels between the two countries, saying that both had banking systems that continued to be profitable and, as a result, were in a good position going forward.
While according to Stevens good domestic policies were not enough to "ameliorate the impacts of very adverse international developments," and both economies had slipped into recession, he said there were "good grounds to think that both countries should be...well placed to take part in a renewed international expansion."
"It is too soon to say this is beginning yet, though developments over recent months are certainly consistent with the view that a recovery will get under way towards the end of the year," he said.
"Most observers think that the early part of any new global expansion will be characterised by pretty slow growth. Even with the uncertainty over the near-term global outlook, however, it makes sense to look forward."
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