Federal Budget and RBA preview

It is shaping up to a big Tuesday 6th October with both the 2020/21 Federal Budget handed down as well as the October RBA Board Meeting. In this podcast with Gareth Aird, Head of Australian Economics and Belinda Allen, Senior Economist they outline the key details to watch in the Budget beyond the headline deficit number. Key policies expected include income tax cuts, a business investment allowance and more infrastructure spending. Budget repair though is still a fair way off and will depend on an improvement in the unemployment rate. No changes are expected to monetary policy at the October RBA meeting even though market expectations have shifted over the past week. Despite the expectation for policy on hold, Gareth and Belinda discuss what the RBA’s preferred policy measures could be if further easing is required.

 

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