RBA remain optimistic about economic prospects

Australia's central bank on Wednesday said if they remain optimistic about economic prospects, and assess if a decline in interest rates to record lows as well as the weakening of the Australian dollar has helped support moderate growth.

Deputy Governor of the Reserve Bank of Australia, Philip Lowe, an event in Melbourne said that the factors that are still missing from the economic recovery is investment in non-mining industries. But Lowe sure if it will be increased over time.

"The flexibility of the exchange rate, the labor market and monetary policy has helped the adjustment cycle in the economy of the country. But we still have to wait for signs of increased business investment outside the mining sector," said Lowe. "Most other recent indicators are also consistent with a modest expansion in the Australian economy. Indicators of business conditions has also been improved, with the majority being above average," he added.

Lowe's comments raised following the release of GDP data last week, which showed Australia's economy grew more slowly than expected in the 2nd quarter. Which has prompted some economists issued warnings about the increased potential for a recession in Australia.