Aussie economy robust - Westpac boss

CANBERRA - Lower interest rates and the federal government's stimulus spending are responsible for Australia's relatively stable economy, Westpac boss Gail Kelly says.

Kelly said she was surprised how quickly the Australaian economy had recovered from the worst of the global financial crisis.

"It's been actually quite outstanding to see how Australia's recovered much, much, much more quickly than we thought would be the case six months ago," she told ABC Radio today.

"I think it's a sign of the very rapid lowering of interest rates that we saw during the course of last year, as well as the fiscal stimulus."

Kelly said the housing market had also been remarkably resilient.

"I think homeowners have used the opportunity of the fiscal stimulus, of lower monetary policy, lower interest rates to pay down their debt and increase their savings," she said.

- AAP