Australia is nearing the height of its V-shaped recovery from the global financial crisis, said the longest-serving current board member of the Reserve Bank of Australia (RBA), who added that Europe would eventually give up on euro over the long term.

Jillian Broadbent, now serving her third term on the RBA board, has clarified though that Europe would only move to a two-currency model by the time the continent would have achieved economic strength and stability.

She told stockbrokers gathered in Melbourne on Tuesday that the country's economic growth would be trimmed in 2010-11 with the equity market maintaining its shaky state, as she noted that Australia was only hit by a mild recession owing to the federal government's fiscal stimulus response to the global economic downturn.

Ms Broadbent is happy though that Australia is inching its way to the top of the V in terms of economic recovery and advancement should resume soon with the country's terms of trade being fuelled by high commodity prices such as iron ore and copper.

She said that such developments would result to financial windfalls for the country in the coming years to make more headway for a positive economic outlook on Australia, which could also spur up to two percent of worldwide growth amidst the sluggish recovery in Europe.

Ms Broadbent is upbeat that the nation is economically healthy in terms of its balance sheet and cashflows largely due to profits from the resources sector that pushes up the national economy, as she expressed confidence that Australian debts incurred from the stimulus programs should be settled in three years.

On China, the RBA board member said that market fears that Beijing would divest its US Treasuries holdings are valid concerns and global equity markets could remain shaky as a direct result, with corporate incomes growth stifled and the effects of global debt crisis casting its gloomy shadow over the markets.

Ms Broadbent is discounting the possibility of any slow downs and said that even jumpy markets would adjust for capital flows as she conceded that Australia's interest rates would be higher at the long end of the curve.

In contrast, global central banks, particularly those from the US and Europe, would most likely opt for lower rates at the long end of the curve, which should lead to a steeper yield curve.