Looking ahead, ideally, the non-mining part of the economy would see a further pick-up to grow a bit above trend for a while, having been below trend for a while up to recently. We may not be quite there yet, but we are I think slowly building a foundation for better performance. What can we do to help this?
The main thing the Reserve Bank can do is run an accommodative monetary policy so as to lend support to demand in the non-mining areas of the economy. Rates of interest are at very low levels, and have been steady there for over a year now. Most observers expect they will be there for some time yet.