RBA says boom still blooming
THE Reserve Bank has hosed down claims the resource boom is over, saying mining investment will keep rising for up to two years and the economy would even benefit if some projects were scrapped.
As the price of Australia's most lucrative export fell to a near three-year low, RBA governor Glenn Stevens said yesterday that miners had billions more to spend.
Despite BHP Billiton shelving its $20 billion Olympic Dam expansion this week, Mr Stevens stood by the Reserve's forecasts for mining investment to keep climbing towards historic highs of about $145 billion a year, or 9 per cent of gross domestic product.
The prediction came as the global price of iron ore slipped below $US100 a tonne for the first time since late 2009, with experts predicting further falls.
''Looking ahead, the peak of the resource investment boom as share of GDP - the highest such peak in at least a century - will occur within the next year or two,'' Mr Stevens said in Canberra.
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