Optimism expressed over Australia

Australia can expect to recover from any recession it may suffer swiftly due to a rebound in China's fortunes, it has been suggested.

Deputy governor of the Reserve Bank of Australia, Ric Battellino, said that while Australia's economy is broadly sound and that interest rates have had a positive effect, a major negative impact on it has been the downturn in the economy of its largest trading partner.

However, he stated, the action taken by the Chinese authorities to help their economy is showing signs of working, commenting: "It is quite possible that the past six months will turn out to have been the period of maximum weakness in the Chinese economy."

Such a recovery could help bolster the Australian property market in the country in the months ahead.

In the last few days it emerged that house prices in Australia rose by 1.1 per cent in the first two months of the year.

The RP Data-Rismark Hedonic Property Index revealed the rise, noting that the main cause of this was an increase in values in Melbourne and Sydney.

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