RBA assistant governor Guy Debelle on Friday assured investors that they can stop worrying so much about a hard landing in China, according to the AFR.
Delivering a speech to “Women in Banking and Finance”, Debelle said,
The Reserve Bank of Australia expects China’s economy to keep slowing down but we do not expect this to be catastrophic to the Australian economy…People have been worried about China for 10 years and there is no reason to believe it is in for a hard landing now.
The RBA hasn’t been one of those people, because for years now they have been singing the praises of the Australia and China trade relationship and China and Chinese growth in general. Senior officials have consistently said they think the China growth story will last for decades.
Commenting on the risks to growth associated with the financial deregulation of its economy, Debelle said:
But China’s economy has already achieved a number of impossible things and now stands a good chance of being the first nation to deregulate its financial system without any significant disruption to growth.
Clearly the RBA remains a China bull and believes that the positive impact on the Australian economy will resonate for some time yet.
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