The Financial Year That Was

The financial year that could be...
In a recent survey of 24 economists by the Australian Financial Review, the following was forecasted for the Australian market over the next 3 – 6 months:

• Economic growth is expected to rise by 2.2% in 2011 and then to accelerate in 2012 to 4.2%.
• The Reserve Bank of Australia is expected to continue tightening monetary policy.
• The Australian Dollar is expected to trade above parity against the Greenback.
• The S&P/ASX 200 is expected to recover back to the 4,900 level.

Indicator                                  3 Month Median                       6 Month Median
$A/$US ($US)                            $1.05                                        $1.02
Cash rate (%)                            5.00%                                       5.13%
S&P/ASX 200 (Points)                4,725                                        4,913   

Source: Quarterly survey of economists. (2011, 27 June). The Australian Financial Review, pp. 17 – 18, 39 – 40.