A leading indicator of economic growth is predicting good news for the second half of 2012.
The Westpac-Melbourne Institute released figures showing a 1.6% increase in economic growth in May.
Experts now believe a 3% annualised growth rate will be experienced in the second half of 2012.
"While the growth rate remains well below long-term trend, it is the fastest since September last year and is indicating that, while moderate, growth in the second half of 2012 and into 2013 will adopt an improving tempo," Bill Evans, chief economist at Westpac, told The Australian.
While further rate cuts were needed to achieve this goal, he was concerned it wouldn’t happen anytime soon.
“That profile presumes further interest-rate relief through the second half of 2012… The current disposition of the monetary authorities appears to be to sit tight for the next few months, in the wake of the surprisingly strong surge in growth in the first quarter of 2012," he said
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out