rudd stays mum on slowing economy

More gobblydedook?


August 01, 2008
PRIME Minister Kevin Rudd has refused to say whether Australia's economy was slowing too rapidly, after a slew of negative economic data fuelled calls for a cut in interest rates.

Asked whether the economy was slowing too quickly, Mr Rudd told ABC Radio: "We believe that when it comes to budget policy, we have done the right thing, it is the right course of action.

Economic data released this week showed a slump in housing approvals, weak retail spending, and consumer and business pessimism.

"And as I said, a $22 billion surplus is the best way you can position this economy going forward. It gives you a buffer for the future."

Monetary policy remained the preserve of the central bank, Mr Rudd said.

"If you start to have governments preaching to the Reserve Bank about particular levels of monetary policy at particular times, it is not a good recipe for the long-term future, because then you have the monetary authorities subject to day-to-day political pressure."

Australia was well placed to deal with difficult global economic conditions, he said.

"The bottom line is we have an impact on the global economy flowing through to Australia from the credit crisis coming out of the US sub-prime," he said.

"We have had the further shock to the economy coming off the back of the global oil shock, the biggest that we've seen since the 1970s.

"The key challenge is that we have a course, a pathway through this, and that's got to be built on a strong approach to budget policy and a strong