RBA'S Broadbent confident in Australia's resilience

Australia’s economy is strong enough to endure the global economic volatility prompted by Europe’s debt crisis, Reserve Bank (RBA) board member Jillian Broadbent has said.

Speaking at the annual Stockbrokers Association of Australia conference, Ms Broadbent pointed to Australia’s strong trade links with "emerging" rather than "submerging" economies.

However, she also suggested that financial markets, including Australian equity markets, would remain unstable, adding that conditions for retailers would continue to be tough.

The comments come after the RBA opted to keep interest rates on hold at 4.5 per cent this month following six successive rises since October. It was a move that prompted speculation about the RBA’s stance, with some suggesting that the central bank is growing more concerned about Australia’s economic recovery.

Announcing the interest rate decision in parliament last week, treasurer Wayne Swan said it would be "welcome relief’" to Australian families and businesses struggling with debt repayment bills.

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