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Australia has 10-speed economy: NAB boss


Talk of a two-speed economy in Australia is damaging, says National Australia Bank CEO Cameron Clyne.

Mr Clyne told an American Chamber of Commerce in Australia luncheon on Tuesday that Australia was more like a 10-speed economy.

He said describing the economy as having two speeds was hurting confidence.

"Part of the problem with this constant reference to two speeds is that people feel that if they are not in the express lane, they're going backwards, which is not the case," Mr Clyne said.

He said confidence, not interest rate cuts, was the key to boosting the economy.

"Part of what's needed to restore confidence is broadening the debate from two speeds," he said.

Mr Clyne said talk of two speeds ignored the fact that the economy was in transition and that the changes that the economy was undergoing had happened many times in the past and would happen many times in the future.

The term two-speed economy general refers to those sections of the economy enjoying the benefits of the resources boom, compared to those that are not.