RBA chiefs says Australians getting on top of their finances
That is the suggestion of the Reserve Bank of Australia (RBA) governor Glenn Stevens, who has noted that many households across the country have been given a "fright" by the fallout of the global economic downturn and are now doing their best to get on top of their finances.
Speaking to Reuters, he explained that Australians are now exhibiting widespread 'economic temperance' in their spending and are instead opting to get savvy with their money and, if possible, build up their savings accounts.
"They have learnt that, guess what, housing prices can fall, that having a lot of debt can be dangerous and that not saving anything out of your current income on the assumption that asset value going up is going to take care of your saving for you is possibly not a sustainable strategy," the RBA governor told the news agency.
This comes in the same week that the RBA warned that the recent floods have led its economists to revise their economic growth predictions for the first quarter of 2011.