Posted on 23 Feb 2010
The Australian economy is on the verge of another boom later this decade as company investments bear fruit, a leading economic forecaster says. However, BIS Shrapnel says interest rates will rise by at least another two percentage points to brake the upswing expected over the next three to four years.
BIS Shrapnel's Long Term Forecasts, February 2010, report said the economy could handle the initial upswing but cost pressures would re-emerge as economic growth increased.
"We are now well and truly into recovery from what turned out to be a modest downturn - and not a recession as other forecasters predicted at this time last year," BIS Shrapel senior economist Richard Robinson said in the report. "We're into a rebuild phase, rather than a rebound."
