This is one of the more bullish outlook statements for Australian economic growth that I have read over the past few days

This is one of the more bullish outlook statements for Australian economic growth that I have read over the past few days. Michael Knox from Morgans is looking for 3% GDP growth in CY2014 which is .5% above the current treasury estimates. His premise is that Treasury has an overly cautious growth outlook for the US with forward growth only around 2.5%. Knox believes strong US growth will have a significant influence on the levels of domestic growth. Knox also has expectations of multiple rate cuts from the RBA. We think this scenario of low inflation gives the RBA room for further rate cuts. This is particularly true if it wishes to pursue its goal of managing down the level of the currency. We think two further rate cuts totalling 50 basis points are likely in calendar 2014. Full blog post here along with their 2014 ASX200 predictions. (VIEW LINK)