Europe's continuing financial woes are likely to hit the global economy, the
head of the Australian central bank has warned.
However, Reserve Bank of Australia head Glenn Stevens said his country would be
relatively unaffected because of its strong trade links with East Asia.
He said this would shield Australia from Europe, despite saying the rate of
growth in Asian nations would slow.
Australia was the only major developed nation to avoid entering recession.
It was greatly helped by its trade ties with China, especially its exports of
iron ore and other raw materials.
"The [European] episode is not yet over, and the issues will continue to need
careful handling by all concerned and close monitoring by the rest of us," said
Mr Stevens.
"It cannot be denied that the potential for further financial turmoil exists."