The Reserve Bank of Australia (RBA) Governor Glenn Stevens said in a speech on Tuesday that Australia had a sound and credible macroeconomic policy framework to respond to significant negative events.

"Even with interest rates at already low levels, and public debt higher than it was, there would, in the event of a serious economic downturn, be more room to ease both monetary and fiscal policy than in many, indeed most, other countries," he added.

Stevens pointed out that the Australian economy was adjusting well to lower commodity prices.