RBA governor Philip Lowe and Treasurer Josh Frydenberg (Image: AAP/David Geraghty)

Could RBA Governor Philip Lowe be right? Is the economy getting better faster than we dared hope?

Last week the man in charge of Australia’s monetary policy stuck his neck out and dared say what few others have said so far: things might not be as bad as all that.

“It is possible that the depth of the downturn will be less than earlier expected,” Lowe said in his monthly note accompanying the monetary policy decision. Yes, unemployment is up. But other important indicators are looking less grim.