FEDERAL Treasurer Wayne Swan has welcomed stronger economic forecasts from the central bank but warned there is still no room for complacency.
The Reserve Bank modestly upgraded its core inflation forecasts for this year and next, ahead of an expected strengthening in domestic demand, the jobs market and wages growth.
The bank also warned interest rates may rise.
Mr Swan welcomed the stronger outlook but warned the global recovery was still fragile.
"I welcome the stronger forecasts," Mr Swan told reporters in Sydney.
"But we can't take them for granted ... they demonstrate that we can be optimistic about the future but there is certainly no room for complacency as we go forward."
"It certainly points to the fact that the economy is recovering and as the Reserve Bank governor has said on many occasions as the economy recovers adjustments will be made independently by the Reserve Bank to the official cash rate."
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Mr Swan said the RBA statement pointed to the importance of stimulus in supporting jobs employment.
"I think the Government and the Reserve Bank are at one on the outlook globally and we are certainly at one on the outlook domestically.''
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