MNI BRIEF: RBA Watching China Growth Closely
MNI (MELBOURNE) - The Reserve Bank of Australia sees Chinese growth as a key risk to the economy and is watching developments closely, Governor Michele Bullock told the House of Representatives Standing Committee on Economics Friday.
“The Chinese economy is still performing okay, it's meeting [Beijing]'s target of around about 5% growth, but they still have a very big drag from the problems in the real-estate sector there,” she noted, stressing the importance of China on Australia's economy via the commodities market, particularly iron ore.
“That is something we're watching quite closely, because developments in China can have quite a big impact on the way our trade develops, and therefore on our growth.”
MNI reported recently China’s slowing economy would weigh on the RBA board. (See MNI INTERVIEW: Weakening China To Weigh On RBA Board)