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Oliver’s Insights – The Australian economy still in the doldrums

Oliver’s Insights – The Australian economy still in the doldrums

Key points are as follows…

  • Australian economic growth remains weak at 2.5%.
  • Expect another one or two RBA cash rate cuts and the $A to fall to around $US0.70 by year end.
  • Record low borrowing rates, the falling $A, lower fuel prices and rising wealth should help boost growth to 3% or just over next year.
  • The recent profit reporting season was better than feared, but stronger economic growth will be needed to meet market expectations.

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