Investing.com - Australia's economy is solid and there are grounds for optimism, though structural changes are on the horizon, Reserve Bank of Australia Deputy Governor Philip Lowe said Tuesday at a speech to the CFA Institute Australia Investment Conference at Sydney.
"My central message is that these fundamentals are strong and they provide us with the basis to be optimistic about the future," Lowe said.
"At the same time none of us has a crystal ball so we can't be sure exactly what that future holds. What we can be sure of is that we will be best placed to take advantage of our strong fundamentals if our economy is flexible and if it is able to adapt to the changing world in which we find ourselves," Lowe added.
He repeated the RBA's recent messages that the fall in the Australian dollar is helping the economy re-balance away from mining investment.
Flexibility in the exchange rate is important, Lowe said.
"Depreciation over the past couple of years is playing an important role in helping the economy adjust to the wind down of the boom in mining investment," he said.