$A to boost flat business sector: RBA

Written By Unknown on Rabu, 25 September 2013 | 16.57

The RBA says a weakening Australian dollar should help revive an anaemic local business sector. Source: AAP

A WEAKENING Australian dollar should help revive an anaemic local business sector, the Reserve Bank of Australia (RBA) says.

Overall business conditions have remained below average over the year to date, with failure rates running above average, the RBA said in its six-monthly Financial Stability Review, released on Wednesday.

But looking ahead, it said, the depreciating Australian dollar should help trade-exposed sectors lift their profits.

Possible threats posed by flat business conditions and high failure rates were likely to be contained, it noted.

"Any potential risks that may arise from the sector are likely to be mitigated by the low level of gearing and limited appetite for taking on debt," it said.

And, it added, business balance sheets were in "good shape".

"The period of deleveraging following the global financial crisis appears to have largely run its course."


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