The Reserve Bank has upgraded its economic forecast, sparking talk of a third consecutive rate rise next month.
In its quarterly statement on monetary policy released on Friday, the central bank upgraded its forecasts for the Australian economy to see growth hitting its long-term target by the second half of 2010.
The RBA forecast gross domestic product (GDP) to grow by 1.75 percent in calendar 2009 before expanding by 3.25 percent in the year to December 2010.
The RBA said the upward revision to its growth estimates reflected overall stronger economic data since August and an improved outlook for the local economy.
“Confidence has improved and spending has been supported by stimulatory settings for both monetary and fiscal policy,” it said.
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