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18 Dec 2013
Flash: a weak AUD as stimulus - BTMU
FXstreet.com (London) - Lee Hardman, strategist at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained the Australian Treasury released their mid-year budget review recently which revealed a deterioration in the government’s finances resulting in part from the weaker growth outlook in Australia.
Key Quotes:
"The budget deficit projection for FY2013/2014 has been raised to AUD47 billion from their August estimate of AUD30.1 billion with no budget surpluses for the entire forward estimates out to 2016/2017. Real GDP growth in
FY2014-2015 has been revised lower by 0.5 point to 2.5%”.
“A weaker Australian dollar and RBA monetary easing will remain the main form of stimulus for the Australian economy going forward as it adjusts a slowdown in mining investment”.
Key Quotes:
"The budget deficit projection for FY2013/2014 has been raised to AUD47 billion from their August estimate of AUD30.1 billion with no budget surpluses for the entire forward estimates out to 2016/2017. Real GDP growth in
FY2014-2015 has been revised lower by 0.5 point to 2.5%”.
“A weaker Australian dollar and RBA monetary easing will remain the main form of stimulus for the Australian economy going forward as it adjusts a slowdown in mining investment”.