Economy grew 2.1 per cent yet it’s ‘over the speed limit’ for the RBA

Professor Richard Holden from UNSW Business School says the economy “grew at 2.1 per cent” but according to the Reserve Bank of Australia it’s “over the speed limit”. “We saw in the national accounts today, not per capita, but overall, the economy grew at 2.1 per cent per year last year; that doesn’t sound great, it’s not great relative to history,” Mr Holden told News24 host Chris Kenny. “But according to the Reserve Bank it’s too fast, it’s over the speed limit because we’ve got negative productivity growth. “They’re probably going to have to raise interest rates later this month.”