June quarter growth to be weaker - RBA

Reserve Bank governor is expecting June quarter economic growth to be weaker, after a strong performance in the March quarter.

Governor of the Reserve Bank of Australia Glenn Stevens

RBA's Glenn Stevens is expecting June quarter economic growth to be weaker than the March quarter. (AAP)

The Reserve Bank of Australia boss is urging people not to get carried away by the economy's strong performance in the first three months of the year.

The economy grew by 3.5 per cent in the 12 months to March, much better that the market forecast of 3.1 per cent.

RBA governor Glenn Stevens told a parliamentary committee that it is inevitable that there will be some payback in the June quarter after such a strong performance earlier.

"Our expectation is for a subdued quarterly number," he said in Brisbane.

"Having had quite a strong one this will be a lower one," he said.

In its forecasts issued earlier this month the RBA lowered its growth forecasts for the year to June by quarter of a percentage point to between two and three per cent.

The Australian Bureau of Statistics releases June quarter national accounts on September 3.


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