Michael Knox says a weak residential property sector is the reason behind the relatively soft Queensland economy. Unlike other property markets, Mr Knox says Queensland’s housing shortage means its housing sector should now be poised to improve. Given the state’s investment in resources, Mr Knox believes growth should be 1 per cent higher than the national average. On the subject of official interest rates, Mr Knox is predicting two more rate rises of 25 basis points before the end of 2011, putting the official cash rate at 5.25 per cent. The RBS Morgans’ model for the Australian dollar has it ending the year at $US1.12-1.13. On the subject of a carbon tax, Mr Knox likens it to an insurance policy and suggests the carbon price should start at $10 per tonne. Lelde Smits reporting.
