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An upgraded forecast by the International Monetary Fund (IMF) is expected to impact the Reserve Bank’s decision to lift interest rates when it meets next Tuesday.
According to the IMF, Australia’s economy will grow 2.5 per cent this year, 0.5 per cent more than the Fund’s original prediction three months ago.
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The IMF also predicted the Australian economy would continue to grow a further 0.5 per cent to 3 per cent in 2011.
IMF mission chief for Australia Ray Brooks told the Australian Financial Review that the positive outlook will likely influence the RBA’s decision to lift the official cash rate.
“This early recovery, compared to [that of] other advanced countries, has allowed the authorities to begin the process of normalising interest rates,” Mr Brooks said.
