The old adage, one man’s gain is another man’s loss has come true in the case of China and Australia.

According to the Reserve Bank of Australia Deputy Governor, Ric Battellino, in the wake of the slow growth in China, Australia stands to benefit from the same.

As per the Governor, the slump in China would drive the record mining investment boom to Australia.

The same would threaten to fuel the domestic inflation in the country.

Battellino said, “There’s no doubt that if China was to slow down,” then “in some ways I would welcome that because I think it’s actually going to make our life here easier to have a more moderate growth rate in China. The challenge for the Australian economy for the next few years is going to be how to accommodate this mining boom”.

The Central banks claims that the demand from China for natural resources and energy would encourage the Companies like BHP Billiton Ltd. The same would enhance the mining investment to about 4.5% of the gross domestic product.

Reports claim that since early October, the policy makers have notched up the borrowing to about 6 times in order to control the rise in inflation.