Australian Business Economics annual forecast survey suggests the Reserve Bank of Australia’s cash rate will peak at 5.5 per cent in 2011 (from 3.75 per cent today).
The cash rate is expected to reach about 4.75 per cent next year.
It suggested median Gross Domestic Property (GDP) will increase 1.2 per cent this year, 2.6 per cent in 2011 and 3.5 per ce t in 2011. It said positive private construction, dwelling construction, business investment and inventories will contribute to growth next year.
Unemployment is expected to peak at 6.2 per cent next year, falling to 5.7 per cent in 2011. The unemployment rate in October 2009 is 5.8 per cent, AAP reports.