Aussie central bank hikes growth forecast

SYDNEY: Australia's central bank upped its annual growth forecast yesterday after a strong first half, but it warned that resources investment a key driver of the economy would peak by 2014.

The Reserve Bank of Australia said it now expected economic growth of 3.5% for 2012, instead of the 3% forecast in May, with the domestic economy powering on at above-average pace in the first six months of the year. AFP