Australian Treasurer Chalmers spoke in an interview with Sky News, saying the two biggest risks he sees to the Australian economy are:
- the lagged impact of the Reserve Bank’s sharp increase in interest rates
- the slowdown hitting China’s economy
- “A big risk to the outlook … (is) what’s happening in China and the way these interest rate rises are biting in our economy here at home,”
- “(I) expect the Australian economy to grow but some of these challenges are growing … Our economy is weakening as a consequence of what’s happening in the world and what’s happened with interest rates at the same time as inflation is moderating.”
On China, the problems facing Chinese authorities were broad:
- “They’re dealing with slowing growth, they’ve got deflation, there are concerns in their property sector and to some extent in their banking sector. Their exports have slowed
Info comes via local media, the Sydney Morning Herald, here is the link (may be gated).
Chalmers is not saying anything we don’t already know. A quick useful summary nonetheless.
This article was written by Eamonn Sheridan at www.forexlive.com. Source