RBA: Need more than housing investment and mineral exports

THE national economy will continue growing slower than average, with Reserve Bank governor Glenn Stevens telling Parliament that housing investment and mineral exports was not enough to offset the restrained government spending and falling investment in the resources sector.

In his final address to the Parliament for the year, Mr Stevens said the RBA board would keep "an open mind" about cutting interest rates but so far there was little reason to think this was holding back growth.

Mr Stevens said no matter what the RBA does with rates, it still comes down to the person or company holding the wallet.

"Firms and individuals have to have the confidence to take advantage of that situation," he said.

"They have to be willing to take a risk - on a new project, a new product, a new market, a new worker.

"Monetary police can't force spending to occur."

In what could be a tacit endorsement of the Federal Government's latest budget update, Mr Stevens said "pro-growth, pro-productivity, confidence building" reforms would help build growth and incomes.