RBA Governor Glenn Stevens said strong commodity prices would push the country's terms of trade back to 50-year highs in 2010, adding recent sovereign debt woes in Europe would have a limited direct impact on the commodity-rich economy.
He forecast the global economy grew by around 1% in the first quarter, which is much stronger than the central bank had expected a year ago and remained upbeat on the outlook for Asia.
Stevens said Australia's modest government debt profile was of little consequence at 6% of gross domestic product and said the strength of fiscal and monetary policy settings would help to fireproof the commodity-rich economy should conditions in Europe deteriorate.