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.