02/10/2010

Economic Update - Warm and Comfortable Economy

The Australian economy is currently in a warm and comfortable position – growth is around trend, inflation is running at 3.1%, unemployment has declined to 5.1% and official cash rate for interest rates remains at 4.5%. However, the underlying challenge for the Government and Reserve Bank will be to keep the economy at this level over the next few years and not allowing conditions to expand too rapidly as the global economy improves. This challenge will not be easy, due to a domestic economy that has been growing continuously for near to 20 years, with only moderately mild downturns during that time and is now reaching towards full capacity. Additionally, the mining and resources boom that began in 2005, and which abated for a time during the global financial crisis, is re-emerging, and placing further pressure on the economy.

Ross MacMillan holds a Bachelor of Commerce (Accounting, Finance and Systems) from the University of NSW, he is a member of the Institute of Chartered Accountants, member of the Securities & Derivatives Industry Association and a fellow of the Financial Services Institute of Australia.
 

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