By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 8 2014
Key points
- While headline news regarding the economy has been bleak, December quarter GDP showed the economy is not collapsing and lower interest rates & the lower $A do seem to be boosting forward indicators for the economy.
- As a result growth should pick up to around 3% by year end which should help profit growth continue to improve.
- Improving growth but from a soft base is likely to see interest rates remain on hold for an extended period.