The Morrison government says it has been vindicated by Reserve Bank of Australia governor Philip Lowe’s latest view that a return to near 3 per cent economic growth is ‘‘quite probable’’ by next year and that further interest rate cuts should not be assumed.

Lower jobless figures, coupled with the central bank’s forecast that a housing shortage could appear within the ‘‘foreseeable future’’ and drive property prices up, have added to the optimism brought on by Donald Trump's truce in the trade war and a possible Brexit deal.