Reserve Bank governor Philip Lowe says the Australian economy is poised for a “rapid rebound” from the Covid recession – if the nation can keep the virus under control, given the pent-up savings and massive financial stimulus washing through the system.

Lowe has urged Australian businesses to be brave and “seize the opportunities” of the digital transformation of the Australian economy in wake of the pandemic period.

Speaking at a CEDA event this week, Lowe delivered an upbeat assessment of the economy, saying Australia was “on the road to recovery”, with the potential to bounce back quickly should the health situation continue to improve.

Lowe warns there is still “considerable uncertainty about the outlook”. But he says there is “resilience” built into the system. “Its been remarkable that in six months there’s two or three vaccines that are in advance stages of development,” Lowe says. “I’m encouraged by that. Its plausible that a vaccine be widely available and we start to get back to normal some time over the next couple of years”. He also notes that despite the downturn, household balance sheets are in good shape and this is being aided by “a lot of stimulus in the system”.