21st October 2013
Reserve Bank of Australia Governor praises UK contribution to Australian economy
The success of the modern Australian economy reflects in part the legal and governance structures flowing from its British heritage, RBA Governor Glenn Stevens told the Australian British Chamber of Commerce at a packed Sydney lunch last week.
In a fascinating speech the Governor outlined the history of the economic relationship between the two countries. He noted that although first the US then Asian markets gradually became larger trading partners, Australia’s economic ties with Britain remain strong and vital today. UK investments in Australia amount to around $500 billion, and the UK represents the second largest destination for Australia’s outward investment.
He also said that the UK and Australia “share an outlook, at a very basic level, on how an economy should be organised and governed” and this enabled very close co-ordination between regulators and economic policy makers. Australia’s imminent G20 presidency would be a good opportunity to work together on important issues like the implementation of the financial regulation reform agenda.
In my speech proposing a vote of thanks to the Governor, I echoed his comments about the opportunities for cooperation on G20, noting that we had had a team of officials from London in Canberra earlier in the week for preliminary discussions on G20.