‘What is the RBA smoking’ with its latest growth forecast?

Sky News contributor Peter Switzer predicts "there will be more spending" in the economy from state and federal governments backing the Reserve Bank's positive economic outlook and rejecting those asking "what is the RBA smoking?". The Reserve Bank of Australia predicted the economic impact from the bushfires and coronavirus would be short-lived as the official interest rate was left unchanged at the record low 0.75 per cent. "I think the multiplier effect will be bigger than what we're guessing at the moment," Mr Switzer said. The February decision is in line with economist expectations after better-than-expected inflation data and a bump in employment figures last week. Reserve Bank governor Philip Lowe said the economy was expected to grow by about 2.75 per cent this year and by 3 per cent next year.

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