Key points are as follows…

·         Australian economic growth came in at a stronger than expected 0.9% in the March quarter, but remains subpar on an annual basis at 2.3% and demand remains very weak.

·         More help is likely required via a lower $A (expect to see $US0.70 by year end) and maybe another rate cut.

·         Record low borrowing rates, rising wealth levels, lower petrol prices than last year, relatively high household saving, the lower $A, rising export volumes and better management of the last boom are reasons not to get too gloomy on Australia.

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