The RBA's Governor Glenn Stevens said that, China's slowdown in the growth target will still allow one measure of its gross domestic product to beat the euro zone in a few years even matches the U.S. economy in a decade.

Also, Stevens said that the Chinese growth slowdown from 10% to 8%, and according to some economists it's a major crash, yet to reduce the inflation rate some slowing was necessary and to put growth on a more sustainable path.

Although, Australia's economy grew at half the pace in 2011's last quarter and the unemployment rose last month for the first time since August, yet Stevens's confidence in China was underscored by the RBA's decision to pause interest-rate cuts for the past two months.