AUSTRALIAN ECONOMY

Press, Volume CIV, Issue 30688, 2 March 1965, Page 17

AUSTRALIAN ECONOMY

Forecast By Bank Continued moderate business expansion in Australia is forecast by the Bank of New South Wales in its latest review of the Australian economy. However, expansion will possibly be at not so rapid a rate as in the last two years, the bank says. “Backed by adequate international reserves and, it is to be hoped, an encouraging inflow of private capital, our Federal and State Governments should be able to press on with incentives to internal capital development.” Modest Fall

The bank says that the modest fall in international reserves, which has taken place so far during the current financial year, has had some useful aspects in curbing inflationary tendencies. “No set rules can be used to fix a desirable level for exchange reserves particularly in the light of elastic international credit arrangements.

“But unless export income rises—and the future is rather uncertain in some primary and mineral markets —and the rate of import falls, some moderate policy adjustments may be required in time to preserve adequate national liquidity abroad,” the survey adds.