Economists believe the Reserve Bank is being far too optimistic in expecting a marked rebound in the Australian economy by the end of the year and anticipate the need for a further cut in interest rates in the coming months. The central bank has cut its near-term economic growth forecasts because of the drought, bushfires and the coronavirus outbreak. But releasing its latest forecasts on Friday, it still expects the economy to rebound to an annual rate of 2.75 per cent by the end of 2020 and to three per cent by end-2021. Annual growth was a sluggish 1.7 per cent in the September quarter – the last official reading of the state of the economy. “While the bushfires and coronavirus mainly pose a short-term

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