09 Sep Australian growth on the mend – implications for profits and interest rates
Key Points
- Australia is seeing a gradual economic recovery with growth likely to reach 2.5% next year.
- This in turn is underpinning a likely upswing in profits.
- The RBA is expected to cut again in November, February and May to 2.85%, although the risk is on the upside.
- The combination of rising profits and still falling rates is positive for shares, beyond short term correction risks.
