Business Spectator - RBA says Aust economy will recover by Xmas

Reserve Bank of Australia governor, Glenn Stevens, stated that Australian economy will start getting better by Christmas but the recovery from recession will be slow.

Treasury forecasts predict the Australian economy will grow by 4.5 per cent from 2012. But IMF staff estimates, published in The Australian, are less upbeat, forecasting a growth pace capped at three per cent between 2012 and 2014.

Treasury's prediction of a modest 2.25 per cent growth pace for 2011 was also challenged, with the IMF expecting a more modest expansion of 1.9 per cent.

It is also suggested that the RBA would not cut the rates any further as it might rather damage the fragile confidence levels than stimulate growth further.

Business Spectator - RBA says Aust economy will recover by Xmas