RBA: Need more than housing investment and mineral exports

THE national economy will continue growing slower than average, with Reserve Bank governor Glenn Stevens telling Parliament that housing investment and mineral exports was not enough to offset the restrained government spending and falling investment in the resources sector.

In his final address to the Parliament for the year, Mr Stevens said the RBA board would keep "an open mind" about cutting interest rates but so far there was little reason to think this was holding back growth.

Mr Stevens said no matter what the RBA does with rates, it still comes down to the person or company holding the wallet.

"Firms and individuals have to have the confidence to take advantage of that situation," he said.

"They have to be willing to take a risk - on a new project, a new product, a new market, a new worker.

"Monetary police can't force spending to occur."

In what could be a tacit endorsement of the Federal Government's latest budget update, Mr Stevens said "pro-growth, pro-productivity, confidence building" reforms would help build growth and incomes.


Bushfire reported near Glen Esk

Bushfire reported near Glen Esk

People in the area may be affected by smoke

Newly planted trees stolen straight out of soil in parklands

Newly planted trees stolen straight out of soil in parklands

The group planted 35 trees for National Tree Day earlier this year.

UPDATE: Fire sweeps through estimated 3000 hectares

UPDATE: Fire sweeps through estimated 3000 hectares

The fire is still burning, now hitting an estimated 3000 hectares

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