12 May 2015
Australian budget in focus - ANZ
FXStreet (Bali) - In view of ANZ, any forecast of a return to surplus in Australia will be pushed out beyond the four year forecast period.
Key Quotes
"The 2015-16 Commonwealth budget will be released at 7:30pm AEST tonight. The fiscal trajectory will be revised down in this year’s budget in response to a weaker economy and a tougher political environment, with the deficit still improving over the forecast period but at a slower pace than previously forecast."
"Any forecast of a return to surplus will be pushed out, beyond the four year forecast period. The economic parameters will be lowered, and there will undoubtedly be plenty of focus on iron ore prices and the terms of trade. On balance, expect a conservative set of forecasts."
"In terms of economic management and policy, there are three key priorities for fiscal policy in Australia right now: • Priority One: Put government finances on a long-term sustainable footing • Priority Two: Support the economy through ‘the transition’ • Priority Three: Build back fiscal policy credibility."
Key Quotes
"The 2015-16 Commonwealth budget will be released at 7:30pm AEST tonight. The fiscal trajectory will be revised down in this year’s budget in response to a weaker economy and a tougher political environment, with the deficit still improving over the forecast period but at a slower pace than previously forecast."
"Any forecast of a return to surplus will be pushed out, beyond the four year forecast period. The economic parameters will be lowered, and there will undoubtedly be plenty of focus on iron ore prices and the terms of trade. On balance, expect a conservative set of forecasts."
"In terms of economic management and policy, there are three key priorities for fiscal policy in Australia right now: • Priority One: Put government finances on a long-term sustainable footing • Priority Two: Support the economy through ‘the transition’ • Priority Three: Build back fiscal policy credibility."