From the Sydney Morning Herald’s Michael Pascoe:
- The Federal Government’s budget outlook has just been substantially changed by the RBA, because the economy is doing substantially better than the Treasury was betting just eight weeks ago
- The latest RBA statement on monetary policy cautiously upgrades its forecasts for the Australian economy... with growth for the year to June 30, 2015 – what Joe Hockey will be concentrating on in his first budget – has been increased to 3 per cent.
- Given that the Treasury Secretary, Martin Parkinson, sits on the RBA board and the two institutions’ economic forecasts tend to agree with each other, several billion dollars worth of pain promised in Hockey’s December mid-year-economic and fiscal outlook presentation has been revised away
Goes on:
- economy that turned the corner in the December quarter
- RBA is positively optimistic about the prospects of 2015 with growth rising to an above-trend rate in the next financial year
The Sydney Morning Herald is non-gated, more here
