THE fallout from Britain's decision to exit the European Union is unlikely to hit Australia in any significant way, new research shows. 
Westpac and the Melbourne Institute's latest Leading Index reading suggests it's doubtful that Brexit worries will dent the Australian economy, which could finally return to its long-term growth rate in coming months as commodity prices bounce.
It follows 14 months of sluggish below-trend momentum, Westpac chief economist Bill Evans said.
"This latest reading suggests growth over the next three to nine months will be -almost around trend," Mr Evans said. "That outlook is more consistent with Westpac's forecast for growth holding steadily around a 3 per cent pace over the next year." A lift in commodity prices, the sharemarket and US industrial production drove the result.
"These components would have captured some of the initial impact of 'Brexit', providing further evidence of the limited expected drag from the UK plebiscite on the outlook for the Australian economy," Mr Evans said.Despite this, Westpac expects the Reserve Bank to cut the official rate to a record low of 1.5 per cent next month.