Governor Glenn Stevens and Financial Markets

financial markets: Governor Glenn Stevens admits it has been a rocky few months for the global economy, with financial markets in turmoil and Australia largest trading partner, China, showing signs of losing momentum, according to Nine News Australia. Those concerns have contributed to the US Federal Reserve delaying its first interest rate hike in nine years, and Mr Stevens says global economic growth is at risk of slowing. Low interest rates and a falling Australian dollar are key to the economy getting past the mining boom and surviving China slowdown, the Reserve Bank says. But the Australian economy should come through in good shape, as it did during the global financial crisis, the governor said during his biannual appearance before a parliamentary committee. Granted his wish of a lower Aussie dollar, Mr Stevens now wants a similar move in the unemployment rate, which he said is too high at 6.2 per cent."We ought to be looking to get back into the fives over time, and given enough time I think we will, unless we are hit by another bad shock from somewhere," Mr Stevens said. Unemployment will fall if the non-mining economy continues to pick up, and the Australian dollar slide to around 71 US cents is helping to achieve that, Mr Stevens said."There is still a pretty good chance that we will come out of this episode fairly well, and much better than we came out of previous episodes of this type," he said. (news.financializer.com). As reported in the news.