RBA growth projections are 'optimistic'
The Reserve Bank of Australia's growth predictions are a little optimistic, according to one leading analyst.
Speaking to Bloomberg, Sally Auld, an interest rate strategist at JP Morgan Chase in Sydney, said that things are not looking quite as rosy as the RBA believes they are.
She told the news provider that the less positive growth outlook that many analysts are predicting is based on the sub-standard performance in the bond markets.
"Given what's happening globally, the RBA rate cut and the fact that the economy hasn't performed as well as some people thought, growth expectations are softer," Ms Auld stated.
She added: "The RBA's global growth forecasts look a little optimistic, and that translates through to the Australian growth figures as well."
Recently, Dr Shane Oliver, AMP Capital Investors' chief economist, claimed that the RBA's decision to downgrade growth is unlikely to force a rate change in December. However, he told the Australian Associated Press that interest rate reductions were likely after the New Year.
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