The Reserve Bank of Australia governor Glenn Stevens would not be drawn into comment concerning a potential shift in official interest rates at the House of Representatives Economics Committee hearing in Sydney this morning.
Mr Stevens did say that economic conditions had improved in the last few months as had the conditions in the international financial markets.
"Things abroad hardly look rosy but they look distinctly better than they did a few months ago," Mr Stevens said.
"Extreme risk aversion has abated, spreads have narrowed and capital markets have continued to thaw, even though in some cases that has relied on central banks financing activity."
Mr Stevens said that while the Australian economy has remained "resilient" it is presumed that consumer demand and first home buyer demand for finance will be softer in the second half of the year.
He refused to be steered on timing for potential rate rises, instead saying the bank will adjust monetary policy "in a timely fashion, when the time is right."