International Economic and Financial Issues: An RBA Perspective

Let me begin by thanking Australian Banking & Finance News Magazine for the invitation to speak to you today. It is very pleasing to see such a distinguished group of speakers talking about the financial services industry in the region, an activity in which Australia, and especially Sydney, is very heavily involved. I have been asked to give a perspective on the international economy. This is something of a change of gear from most of the other presentations you have heard today, and as I set out to prepare these remarks I wondered what I might say that would retain your attention. On reflection, however, I think the current state of the world economy is of quite some interest for those who are involved in the financial services sector. Moreover, there are some long-run trends where the financial services sector’s role will be critical. I’d like to explore some of these issues briefly in the time available. I will not say much at all about the Australian economy, because the focus here is on the region and the world. Of course, the Bank’s views about the Australian economy were spelled out in detail in the Statement on Monetary Policy released last Friday. This week we have also had the Budget. That is surely enough to digest on Australia.