RBA’s Stevens: Economy on road to recovery, little idle capacity

RBA Governor Stevens says Australia is on the road to recovery and that spare capacity in the economy would only last a “little while”, highlighting the need to boost supply.

More also needs to be done to boost the supply of housing to meet the rapidly expanding population, perhaps through reform of planning rules.

While massive offshore investment in Australian resource projects would boost economic growth in coming years, it could also sharply widen the country’s current account deficit.

One of the mildest downturns the country has had according to Stevens, with recovery likely underway. That said, the RBA Governor opined that there was still some uncertainty that the recovery would become a fully fledged expansion.

AUD/USD is trading firmer, presently at .9070.