MARCH 2010

Economic Update

Professor Neville Norman, Melbourne University

As summer ends and we move into autumn, the economic outlook - both in Australia and globally - is mixed. Professor Neville Norman of Melbourne University says the Reserve Bank decision in February to leave official interest rates on hold, surprising most economists, reflected a cautious view about the progress of the recovery. But he says the Bank will still want to return interest rates to "normal" levels, and more rate hikes will follow. The Henry Report on taxation, due to be released shortly, and the Federal Budget in May are the next major signposts for the economy.